The idea is opposed, however, by such players as the New York Stock Exchange , for whom it might mean anything from eliminating its human floor traders to becoming obsolete altogether. Though we divide the industry up into brokerages and mutual funds, within the two segments there are significant differences among the players. You'll want to make sure you not only know which segment you're interested in, but also how the particular company with which you're interviewing is distinguished from the competition. Brokerage A broker acts as the intermediary between the buyer and seller in a securities transaction. The buyer and seller, not the brokerage firm, assume the risk.
Brokers charge their clients a commission.
A discount broker, such as TD Waterhouse, generally just executes trade orders and issues a confirmation few or no frills. Mutual funds often have a specific investment focus be it income, long-term growth, small cap, large cap, or foreign companies. And managers are restricted in what kinds of investments they can make. All investors share equally in the gains and losses of a fund, and probably the most important factor in choosing one whether to work for or invest in is your tolerance for risk. Bull markets tend to make many funds look good, but a downward turn or a jump in interest rates can have a significant negative impact that may take longer to correct for a fund than in the nimble independent investor's portfolio.