Most Viewed What Is Speculation?
Puts And Calls
A Correct Basis For Speculating
Minor Movements In Prices
What Stocks To Buy
Successful Speculation
Stock Some Terms Explained
Stop Loss Orders
What Stocks Not To Buy
Market Information
Least Viewed
Bucket Shops
When To Buy Stocks
When Not To Buy Stocks
Possibilities Of Profit
Manipulations
When To Sell Stocks
Two Kinds Of Traders
Choosing A Broker
Major Movements In Prices
Marginal Trading
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Choosing A Broker
It is very important that you choose a good broker. No matter how
careful you are, it is possible to make a mistake. However, if you
choose a broker who is a member of the New York Stock Exchange, you have
eliminated a very large percentage of your chances of getting a wrong
broker.
Occasionally a member of the Stock Exchange fails and once in a while
one is suspended for running a bucket shop or being connected with one,
but these instances are very rare compared with the number of brokers
who get into trouble who are not members of the New York Stock Exchange.
The rules and regulations of the Stock Exchange protect you to a great
extent.
When you buy stock on margin, you leave your money in the hands of a
broker, and you should know that he is responsible. No matter who your
broker is, you should get a report on him. If you are a subscriber to
Bradstreet's or Dun's Agencies, get a report from them. If you are not a
subscriber to any mercantile agency, you perhaps have a friend who can
get a report for you, or your bank may get one for you. Banks make a
practice of getting reports of this kind for their clients. When asked
to do so, we send our clients the names of brokers who are members of
the New York Stock Exchange, but we prefer not to recommend any broker.
Of course, we cannot guarantee that a broker is all right. We simply use
our best judgment, but, as we said before, you eliminate a large
percentage of your chances of going wrong when you trade with a broker
who is a member of the New York Stock Exchange.
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Previous: Bucket Shops
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