Final answer:
Individuals can use BrokerCheck to investigate a broker's qualifications and service record. It provides a comprehensive background check on brokers and firms, contributing to portfolio diversification and informed decisions about engaging with stockbrokers and securities exchanges.
Step-by-step explanation:
Members and non-members alike can look into a broker's service and qualifications record by accessing BrokerCheck. BrokerCheck is a free tool provided by the Financial Industry Regulatory Authority (FINRA) that allows investors to review the professional backgrounds of brokers and brokerage firms, as well as investment advisers and firms. It includes information on licensing, employment history, and any regulatory actions, complaints or arbitration claims.
Portfolio diversification is a strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk. The role of a stockbroker is to assist clients in buying and selling securities, offering advice, and managing portfolios. A securities exchange is a marketplace where securities, such as stocks and bonds, are bought and sold.