What to Know about the Broker?
Have you ever heard the term of stock broker? If you invest in stocks, you are certainly familiar with the broker or in more complete stock broker. Knowing about the stock broker is just as important as stock investments itself. For those of you who are interested to invest in stocks, you’ll want to know about a stock broke especially for you want to invest your money in stock market and need to visit alphabetastock.com.
In a securities firm, the investor buying or selling shares, there is a profession called as a stock broker. The broker has a duty to help investors execute purchase transactions. As technology advances, emerging online trading that replaces the role of broker. Despite the shift, but stock brokers are still required by investors as a consultant, and even to execute sale and purchase transactions.
The job of brokers is the that depends on the commission, so the more frequent transactions, the greater the revenue that the broker will take gained. However, in addition to dealing with money belonging to investors, the broker frequently work as a marketing broker who is looking for investors willing to entrust the management of funds to the stock broker.
To avoid the bribe, you’ll want to know a rogue broker mode. Here are three modes of rogue brokers in the stock market.
– Short selling is the sale transaction mode that is not supported by the availability of securities.
– Cornering is a psychological mode of driving the market to weaken the value of certain stocks. When the value of these shares was made at a specified price, then the benefits can be obtained from the difference between the price of shares purchased at the lowest level.
– An apparent trade mode is trade transactions between accounts of the securities with other securities accounts. But the owner of the account is still interlinked or the account owner is still in the same party. This mode is done to create the perception of the market has been trading transaction when no transaction occurs.