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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