Stock Broking

Stock Broking Tips

Note that the online platform may be open to a lot of people hence if you are accessing a public computer or interface, then do not save your username password or any other details.Do not make any online transaction of stocks from any web site or portal which does not begin with https. Https sites are secure sites and hence are considered safe for online buying and selling of stocks.

Do not disclose the password or the username or the secret question and answer of your Demat account to any one and remember to keep changing it at regular intervals.Make sure that the broker you use is a listed one and you keep getting periodic updates of your account details.

It is also important to understand that the market may face good times or bad times and hence your portfolio should be managed in such a way that if one type of investment or if one company falters, your entire portfolio will not get affected. Hence you should diversify your investments across a large segment of investments or a large number of companies so that if one goes through a bad phase you still do not end up making too many losses.

You should never blindly follow any market rumours or any speculation news items that come out in the public domain. You should depend on your own observations and research about the issue. A lot of trading analysts or equity research analysts come up with hot selling or hot buying items. But rather than just plainly going by what other people say you should always apply your own research and discretion before taking a final call.

Stock Broking Frequently Asked Questions ( FAQ’s)

If you are interested in getting into Stock broking then you would be having a few questions in mind. We have collected the most important and the most frequently asked questions asked by people who want to get into stock broking. The frequently asked questions which are often asked are given below.

Who can be a stock broker?

Any one and every one who is interested in becoming a stock broker can be one provided he is a graduate and has atleast two years of experience in a relevant field of broking, consultancy or advising.
How can one become a stock broker?
In order to become a stock broker one has to get themselves registered with the particular stock exchange for which he wants to be the stock broker.

What are the responsibilities of a stock broker?

The responsibilities of a stock broker are to facilitate the buying and selling of stocks or of shares of a particular company. Thus the stock broker has to be affiliated with the main stock exchanges in the country so that he can help his or her clients in performing the transaction with the stock exchange.

Who can not become a stock broker?

You may not be allowed to become a stock broker if you are not a graduate or do not have the relevant work experience details. You can also be refused to be given a stock broker license if you have earlier defaulted at any stock exchange or have been bankrupt before.

Which are the institutes that offer a stock broking related course?

There are several institutes that will offer stock broking related courses in India. Some of them are,

•    National Stock Exchange of India, Mumbai

•    Institute of Financial and Investment Planning, Mumbai

•    Institute of Chartered Financial Analysts of India, Hyderabad

•    Institute of Company Secretaries of India, New Delhi

•    Bombay Stock Exchange Training Institute, Mumbai

What Is Stock Broking

A stock broker is nothing but a registered and qualified working professional who buys stocks and derivatives for other people. The stock broker thus performs all the transactions for people on the stock exchange. The stock broker maintains information of the people for whom he is buying or selling stocks. This information includes name, address, PAN no and other relevant information. No transaction can take place in the stock market with out a stock broker.

The stock broker can not give inputs or advice to people buying or selling stocks unless he is registered with the Securities and exchange board of India as a portfolio manager. The stock broker takes a certain brokerage for the transactions he does for his clients on the stock exchange. The brokers are expected to issue contract notes to the clients after a particular transaction has been done. They are also expected to issue periodic reports to their clients with respect to the transactions that have been done by them in that periodic interval. If you are looking to become a portfolio manager then there is a different policy and procedure that you need to follow for it.

Stock brokers can be individual stock brokers or form a company or an organisation there by making a brokerage. All brokerages have to pay a certain sales tax for the transactions that are done with the brokerage by other clients wither through selling or buying a certain stock. Thus any person who wants to buy or sell any stock with a particular stock exchange has to do that with a particular stock broker affiliated with that stock exchange.

How To become A Stock Broker

If you are interested in becoming a stock broker in Indi then you can go through the following guidelines that will tell you how to become a stock broker in the country and what are the minimum requirements required for the same. The minimum age of twenty one is required to be a stock broker or a partner or a director of a stock broking company. The stock brokers or directors must be graduates at least.

They should also possess work experience of minimum two years in a work environment dealing with securities either as a consultant, advisor or a portfolio manager or should have worked as a treasurer, broker or a sub broker or a broking agent at a brokerage which is authorised as a brokerage in the country. If you want to get registered with the National stock exchange then a minimum equity capital of at least Rs. 30 lakhs or 0.3 million to get registers.

Also if you want to be registered as a broker then you should not have been involved in dishonesty or any fraud of any kind and should not have defaulted at any stock exchange as well as not have become bankrupt. If you are interested in taking up any course related to stock broking or the capital markets then you can take courses with the following institutes.

•    Institute of Chartered Financial Analysts of India, Mumbai

•    National Stock Exchange of India, Mumbai

•    Institute of Financial and Investment Planning, Mumbai

•   Institute of Chartered Financial Analysts of India, Hyderabad

•    Institute of Company Secretaries of India, New Delhi

•    Bombay Stock Exchange Training Institute, Mumbai

•    All India Centre for Capital Market Studies, Nasik