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Aug 13, 2008

What To Look Out For In A Credible Stockbroking Firm Pt 2

© John Efetobor. All Rights Reserved

Presently, there have been serious revolutionary and audacious changes that has taken place in the capital market by the regulatory authorities to protect investors and ensure that there is a level playing ground for investors to do business, but despite all of that, it is incumbent upon investors to do a thorough due diligence before pitching your tent with any stockbroking firm, it is this important subject that this article sets out to address. I am optimistic that the information. You’ll get from this article will open your eyes to be able to effectively filter the charlatans and fraudulent operators in our market from the genuine ones.

  • Guiding Lights To Look Out for Includes:

    Status Of The Operators: Find out who are the directors of the firm and their backgrounds, this can be done online at the appropriate channels. In fact, confirm if the officers of the company are registered with the Chartered Institute of Stockbrokers (CIA). Find out if the management staffs are qualified and well trained to handle the responsibility of a stockbroking firm. How many duly licensed and qualified stockbrokers are trading for the company?

    Vision Of The Firm: Every responsible stockbroking firm will normally have at a very visible position especially at the reception hall it’s vision Read through it to ensure if the firm is vision oriented and purpose driven., see to it that the vision of the firm aligns with your expectations. Ask for the profiles of the company to enable you assess the mission statement and possibly the core values of the company. Don’t be shocked to find out that some stockbroking firm don’t know where they going and don’t understand why they are in business.

    Solvency: Find out the ability of the stockbroking firm to meet maturing obligations as they come due. Once in a while regulatory authorities may prevail on firms to beef up their operating capital base to meet up with the times. Find out if the firm can meet such emergencies. Find out the firms forthrightness in meeting financial claims of its clients, some firms have been found to divert checks meant for clients to themselves.

    Dear investor. ensure you find out every important details about the stockbroking firm you intend to do business with, this can save you avoidable setback.

    Please don’t speed read this article, be sure to bookmark this site, so you can return to it again and again. Many visitors begin their days by spending 15-30 minutes here and report that it helps them become more focused, motivated, and confident.




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