STOCK BROKER

WHO IS A STOCK BROKER?


 
A Stock Broker, or a Broker in short, is basically a commission agent who provides his services by making transactions in shares and securities on behalf of his clients. Since, the clients are non-members of a stock exchange and in order to trade in shares and securities, they need the help of someone who's a member of the stock exchange and in this case, a Stock Broker plays the helping role.

For a person who wants to invest in shares and securities, most importantly for the first timers, they need proper suggestions and timely guidance, this can be done only with the help of a Stock Broker. Moreover, since a Stock Broker is a member of the stock exchange, he is the best one who can help an investor, i.e., his client in the trade and investment of shares and securities.

However, not all can be a stock broker. The job of a stock broker is full of risks and responsibility since he has to deal in shares and securities which fluctuate a lot, fluctuations are a part of the stock market in fact. In order to deal and trade in shares and securities on recognised stock exchanges, the stock broker should first register his name as a broker with the Securities and Exchange Board of India (SEBI). However, for this registration, he needs to possess certain qualities which qualify him to be a stock broker.

QUALIFICATIONS REQUIRED TO REGISTER AS A STOCK BROKER:

A person, and even corporations and institutions, can become a stock broker once they possess the following qualities -

1. He must be an Indian citizen with 21 years of age or more.
2. He should not be an insolvent/bankrupt.
3. He should not be compounded with creditors.
4. He should not have been convicted for any offence, crime, fraud, etc.
5. He should not have been engaged in any other business.
6. He should not be a defaulter in any other stock exchange.
7. He should possess the required educational qualifications, in most cases a graduation degree would do the purpose.

Once all these qualification criteria is fulfilled, the selection committee of the stock exchange would select a broker on the basis of their qualifications, experience and financial status as well as most importantly on the basis of their performance in the written test, group discussion and personal interview.
This website was created for free with Own-Free-Website.com. Would you also like to have your own website?
Sign up for free