National Stock Exchange

National Stock Exchange
NSE

Monday, March 30, 2009

Why are brokers required?

Investing in equities is quite risky. The broker is a professional, who knows the risk and can advise the investor accordingly. Secondly, an exchange will become an unwieldy mechanism if the entire universe of investors were to go and start making bids and offers. Reducing the number of individuals is a way of keeping control.

Third, equity trading can also be abused. To prevent these abuses, exchanges as well as the Government has a number of regulations in place. Restricting activity to the members of the exchange will enable the regulations to be followed, preventing abuse of the system.

3 comments:

  1. Yes equity market is highly risk but on the other hand returns associated with it is also very high. To ensure your good returns use experts recommended stock tips. It will help you to earn good profit.

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