SHARETIPSINFO >> Articles Directory >>Learn how to deal with your broker and sub broker
Today, there will hardly be a person who does not know about the stock market. However, the present is such that by simply knowing about the stock market is not sufficient; you have to understand the stock market. If you are asked to define a stock market, the most common answer will be that the stock market is a place where securities are traded. However, when asked where exactly a stock market is, there will be no answer but a prolonged silence instead. This is because no one knows where a stock market is. Again, there will be some who will confuse the online stock market with the stock exchanges. That is, in other words there are many people who believe that the stock market and the stock exchange are the same thing. However, this is not true and is a completely off the beam concept. Though it can be said in no doubt that, the stock market and the stock exchanges are related, but they are in no way synonymous to each other. However, it is advisable that you learn how to deal with your broker and sub broker.
Stock market – a virtual concept
The share market or the stock market is a more or less virtual concept. It has no material existence. On the other hand, a stock exchange is a place where we deal in the securities of the stock market. Now, there will be many people who will be wondering as to why we have called a stock market a virtual concept. The answer to this question is quite simple. We have called the stock market a virtual concept because in reality there is no material existence of a stock market. In other words, there is no such place known as the stock market. This is because in a stock market there is no direct contact between the buyers and the sellers. This was just an example showing how limited our knowledge is. Another question that crops up as such is what is broker or rather how should you deal with them. It is already known that, there will be only a very few investors who will be able to answer this question. It is important to get some share tips from the broker.
Distinguishing the stock market from the usual market
As said stock market is a virtual place where there is no direct contact between buyer and seller. Nevertheless, before we go into understanding about the broker and the sub broker let us at first analyze a few more points that distinguish the stock market from the usual market, we talk about. The first basic difference between the stock market and the usual market is that the usual market we are referring to is a place where there is a trade in goods and services take place through a direct contact with the buyers and the sellers. On the other hand, a stock market is a virtual place where even without the direct contact with the buyers and the sellers securities are traded, that is, in other words, are bought as well as sold. In addition, unlike the normal or the usual market where we get a wide range of goods and services displayed in front of us, in these share markets or stock markets no goods and services are traded. Rather in the place of goods and services, securities are traded in these markets. The security mentioned here refers to the different shares, stock, bonds, debentures, etc of companies. These securities are the only items that are available in the stock market or the share market. Here we use the term invest to signify the purchase of any securities. In other words in the share market or the stock market, we do not buy or purchase the securities like shares and stocks rather we invest in it.
Brokers are generally the middlemen
We have already learned about the stock market, now it is important to know about the stock brokers and the sub brokers. Brokers are generally the middlemen. Thus, brokers are the person who carries out certain functions on behalf of his clients. Thus, it is important that you learn how to deal with your broker and sub broker.
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