What You Stand To Gain By Being Acquainted With Your Stock brokers, Registrars

3 Min Read

Stock brokers and Registrars play a key role in profitable investment in shares. Its so typical of a person to invest in shares and not having an idea on it. This is so risky yet people do it.

In the Stock market, Stock brokers are licensed to trade in shares on behalf of investors. They also act as agents for companies that want to sell shares through public offers or private placement. They are supposed to be professionals or experts, and are expected to advice and guide people that want to buy shares.

Investing in shares means you’ll definitely need the services of a stock broker. One may not necessarily buy shares from a stock broker, but when it comes to registration with the Central Securities and Clearing System (CSCS), a stock broker is mandatory as well as when you wish to sell these shares.

Without a stock broker, dealing in shares is almost impossible. Its a must a stock broker registers your shares with CSCS, which will help in the selling. For you to realise your money invested in shares, a stock broker comes in handy.

While there are over 100 licensed stock brokers, not all of them are efficient or trust worthy. Some are very inefficient, while some are quite dubious.

When a dubious stock broker collects money from people who want to buy shares, he/she may either not buy the shares on time, and instead be trading with the money, or may buy the shares in his/her name with the money, and then sell them to the investor at a higher price.

The reality is that it is difficult to ascertain the reliability of any stock broker. The key is to be close to, and monitor, whichever stockbroker you choose. Before you choose a stock broker, ask questions, do some search on the internet, visit their office, know the staff, have the phone number of the company and that of some of the key staff. And after choosing a stock broker, don’t be far from the office.

If you ask them to do anything, be it buying or selling shares, or verifying your share certificate, do so with specific instructions and deadlines. Don’t leave anything to chance or their discretion.

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