What is the purpose of a brokerage firm?

The primary purpose of a brokerage firm is to offer investment services, facilitating access to stock markets for individuals and institutions. These firms enable clients to buy and sell various securities, such as stocks, bonds, and mutual funds, acting as intermediaries between investors and the financial markets. They often provide additional services like research, financial advice, and investment strategy development, empowering clients to make informed decisions about their investments.

The other options represent services provided by different types of financial institutions. For example, accessing credit and loans is typically the domain of banks or credit unions. Checking and savings accounts are essential banking services that help with day-to-day financing needs. Personal loan applications are also primarily managed by banks and credit unions, not brokerage firms. This distinction highlights the specific role brokerage firms play within the financial ecosystem, focusing primarily on investment and trading activities.