Who is licensed to buy and sell stocks and other investments on stock exchanges?

The correct answer is stockbroker because stockbrokers are specifically licensed professionals who facilitate the buying and selling of stocks and other securities on behalf of clients. They operate within established regulations and must obtain the necessary licenses, such as passing the Series 7 exam, to trade securities on stock exchanges legally. Stockbrokers interpret market trends, provide investment advice, and execute trades, making them essential intermediaries in the investment process.

Investors, while they engage in buying and selling stocks, can do so directly through brokerage accounts without the need for a specific license. Traders typically refer to anyone who engages in buying and selling financial instruments, often on a more frequent basis, but not all traders are licensed stockbrokers. Financial advisors provide clients with guidance on investments and financial planning but may not have the license necessary for executing trades unless they are also certified as stockbrokers. Hence, stockbrokers are the only professionals mentioned here explicitly authorized to conduct such transactions on stock exchanges.