Lesson One · Division of Labor
A is the licensed middleman between you and the exchange.
When you 'buy a share,' four parties are involved: your broker (who routes the order), the exchange (who matches it), the clearinghouse (who guarantees settlement), and the custodian (who holds the actual shares). You only deal with the broker directly. Your is licensed by a — the national authority that sets the rules and can suspend or fine them. An unregulated broker is a red flag no feature list can cancel.
“Your broker is the only part of this chain accountable to you. Pick that one carefully.”