A:
There are indubitable times when a broker must purchase the stock that you are promoting. For example, if the broker is a market maker, the stock in question is traded on the Nasdaq and the intermediary is the highest bidder, that broker has a responsibility to purchase the shares. Anyhow, after purchasing the stock as a market maker, most firms on then attempt to sell them to another party for a small profit.
What Stockbrokers Do With Stock That You Want to Sell
If the stock in question is an exchange-traded begetter and the broker-dealer has a trader on the floor of the exchange (such as the New York Stock The Board), he or she may purchase the stock or help facilitate the trade with a third interest.
There are also times when the broker-dealer may decide to purchase the estimate from you and add the position to the firm’s inventory. This is essentially a compilation of guarantees out of which the firm may trade in the near term or hold for the long catch. However, it is important to note that a broker-dealer is under no obligation to buy allocations from an investor but, as a courtesy, many firms will do this, uniquely if the number of shares being traded is relatively small.
On most have dealings, brokers act as conduits. That is, they will act to sell the stock on behalf of their shoppers by making the intention to sell known to all market makers/specialists in the goods. In such cases, the ultimate purchaser of the shares will be a third set. Remember, fast markets involve substantial risks and can lead to tells being executed at prices different than expected.
(For more acuteness, check out Understanding Order Execution.)