The document discusses the roles and functions of stock exchanges and brokers. It begins by explaining that the primary market deals with new security issues, while the secondary market (i.e. stock exchange) allows existing securities to be traded. Brokers act as intermediaries between stock exchanges and investors, purchasing and selling securities on investors' behalf. Brokers must abide by regulatory codes to prevent manipulation and give accurate information. The document also notes some expectations for brokers to provide services like investment suggestions, quick order execution, price quotes, and incidental services to investors.

2. Introduction
 The market for long term securities like bonds, equity
and preferred stocks is divided into primary and
secondary market. The primary market deals with the
new issue of securities. Outstanding securities are
traded in the secondary market, which is commonly
known as stock market or stock exchange.
 In secondary market, the investor can sell and buy
securities. Stock market predominantly deals in equity
shares.

3. Functions of stock exchange
Maintains active trading
Fixation of prices
Ensures safe and fair dealing
Aids in financing the
industry
Dissemination of information
Performance inducer
Self regulating organisation

4. Regulatory framework
Ministry of
finance
SEBI
The governing
board

5. The broker
 A broker acts as a mediator between stock exchanges
and investors. He purchases and sells securities on
behalf of investors with their permission.
 The broker has to abide by the code of conduct laid by
SEBI. The code of conduct prevents the malpractice,
manipulation and gives other statutory requirements.
 If a broker is involved in manipulation, or price rigging
or gives the false information, his registration is likely
to be suspended. If the rules and regulations regarding
insider trading and take over codes are not adhered to
the registration may even be cancelled.

6. The broker and investor
Broker should provide adequate information about
stock
Should be capable of giving short term and long
term suggestions to the investors.
Ability to confirm sale and purchase of securities
quickly
He should be able to provide price quotes quickly
He should have a good name in the society
Adequate experience
Should have contact with other stock exchanges to
executes the orders profitably
The broker should also offer incidental services like
arranging for financing the clients transaction.

7. Types of orders
 Limits order
 Best rate order
 Discretionary order
 Stop loss order