Principles Of Managerial Pearson Education -Myassignmenthelp.Com

Question: Discuss About The Principles Of Managerial Pearson Education? Answer: Introducation A stockbroker is a person who plays the role of a mediator between the investors and the companies in which the investors their funds by acquiring shares of such companies. Thus, the definition of a stockbroker itself will help us to understand about the important role that a stockbroker plays (Cox et al., 2014). In respect of direct investment, approach to investment in shares the roles of a stockbroker is explained below in brief. Managing the portfolio of the client: The stockbrokers have the responsibility to manage the portfolios of his or her clients to ensure that the clients are in a position to earn stable return on his investment at minimum amount of risk. Suggesting the best possible course of investment decisions: The stockbroker will provide the investors with best possible investment strategies by suggesting the shares of different companies in which they should invest in order to earn maximum amount of return at a given level of risk. It is important to note that the stockbroker does not have the final authority to invest the money of the client. The stockbroker can only recommend and suggest the final decision of investment lies with the investor himself (Gitman et al., 2015). Appraising the investors about all possible risks: The stockbrokers need to provide all relevant information about the different risks that are associated with the direct investment approach to ensure that the investors are aware of all possible risks of investment in shares of different companies before taking final decision of whether to invest or not in the shares of a company. Analysis of different investment strategies: The Stockbrokers are aware of the complexities of stock market and professionally equipped to conduct different analysis of the market. Thus, the stockbrokers must also enlighten the investors by providing those results of different analysis and making it sure that the investors understand such analysis to take better decisions in relation to utilization of their funds (Gitman et al., 2015). Optimizing returns for the investors: The stock market is an unpredictable place with many investors looking to maximize their investment by investing in the market. However, there is no guarantee provided that the investment made by the investor will be profitable or give positive return. Similarly, the stockbrokers though do not guarantee maximization of investors return but optimization of return of investors is one of the most important objectives of the investor. Optimum investment strategy: An optimum investment strategy shall be suggested to an investor by assessing the objectives of the investor. Investors have different objectives, i.e. some may have the objective to maximize their return and thus do not hesitate to accept high amount of risk, whereas there may be others who are not willing to accept high risk (Sullivan Mackenzie, 2017). Thus, the stockbroker will have to evaluate the objective of different investors and accordingly will have to suggest them the optimum investment strategy. References: Cox, J. D., Hillman, R. W., Langevoort, D. C. (2016).Securities regulation: cases and materials. Wolters Kluwer Law Business. Gitman, L. J., Joehnk, M. D., Smart, S., Juchau, R. H. (2015).Fundamentals of investing. Pearson Higher Education AU. Gitman, L. J., Juchau, R., Flanagan, J. (2015).Principles of managerial finance. Pearson Higher Education AU. Sullivan, R., Mackenzie, C. (Eds.). (2017).Responsible investment. Routledge.