Stock market investing has become a common phenomenon in every part of the country. People all over India invest in one or other forms of security like stock, shares, debentures and other financial instruments which are traded upon the online stock exchange. With an increase in the customer base who are regularly investing at the stock exchange, regulatory bodies digitized the stock exchange and the related process. Stocks and shares are traded on an online stock exchange in a dematerialized format. Moreover, with the increase in regulations, customers started to find it difficult to invest in shares and understand the investment procedures. A beginner may feel intimidated due to certain prerequisites that must be fulfilled. With the dematerialization of shares and digitization of stock markets, it became necessary to appoint an intermediary who can help individuals and traders with the stock market investment.
Stockbrokers help traders with the investment procedure. They provide various services and support individual traders at every stage of the stock market investment. Moreover, they trade on behalf of the traders and companies indulged in the business of stock market investment. Their main goal is to help the traders by investing in securities that can provide sufficient returns in the future for a certain charge known as brokerage.
Best share broker in India provides various facilities and services which are listed below:
- Underwriting and agency services:
Stockbrokers provide underwriting and agency services to companies whose shares are being traded in the online stock market. A company floating shares for the first time may not be sure of a complete subscription of shares. Therefore, in order to cover their risks, companies hire stockbrokers who are willing to buy the remainder of shares unsubscribed by the general public. Moreover, stockbrokers provide agency services like collection of subscription amount and transferring share certificates to the customers.
- Keeping a record of investment:
Stockbrokers maintain a complete record of every transaction they have entered into on behalf of individual traders and companies involved in the trading business. This removes any kind of ambiguity and saves the company or individual investor from any kind of fraudulent activity.
- Investing on behalf of traders:
Stockbrokers perform the main function of investing on behalf of the individual traders. They employ all kinds of tactics and personal skills in order to search for the best avenues where investment would yield sufficient returns. Brokers charge a certain amount of fee for every transaction. For example, a discount broker charges brokerage on a flat rate basis. Customers and traders must select brokers according to their budget and brokerage rate charged by the brokers.
- Construction of an investment portfolio:
Stock brokers help in the creation and establishment of a perfect investment portfolio which involves diversification of shares and securities. Stock brokers invest in different types of securities in order to diversify the risk of traders and increase the chances of greater returns.
- Conducting market analysis:
Stockbrokers conduct timely market analysis and provide the same information to the traders and stock market investors. They make sure every bit of market information and latest trends are informed to the customers for correct investment.
These services make an individual the best share broker in India. The services provided by the best stock broker are unparalleled.
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