ABSTRACT
This chapter explores what a broker is, how to select one, and how they purchase and sell securities for artist. A broker is someone who facilitates the exchange of something between a buyer and a seller. Brokers work for companies known as brokerage firms, which specialize in the buying and selling of securities-related investments. There are different levels of service that a brokerage firm will provide, which result in different levels of fees. The most common ones are full-service brokers; discount brokers and online brokers. Online brokers are really a subset of discount brokers. While purchases of stock through a broker incur a stated commission, bond purchases often profit a broker in the form of a dealer's markup. When artist hold a security through a broker, the broker itself is technically considered to be the owner of the securities. The broker is simply holding the security on behalf of its clients.
