Defensive Investor Qualities
Intelligent Investor: Chapter 3
The Intelligent Investor: Chapter 2
The Intelligent Investor: Chapter 1
The Intelligent Investor book: Introduction
What is a Stock Broker? Different types
Hello friends, I am Laxman, and in this article, we see what is a Stock Broker and also different types of stockbroker. Which Stock Broker is right for us, and which are we have to avoid stockbrokers.
What is Stock Broker?
Stock Broker is the broker who takes the brokerage of transfer of stock from one Investor to another. let’s understand with an example,
Geeta takes the share of reliance Jio by ordering from his broker. When other investors want to sell shares, they tell their broker. In today’s computer world, both brokers put the buy order with price and sell order with the price.
When they match each other order then the share from an investor to his broker account is transferred and money is transferred from the broker to the investor as well Geeta takes the share from his investor and gives the money to
a broker, This process takes 2 days for transfer share. Taking money giving share is done online.
Different Types of Stock Broker:
-
Full-time broker
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Discount broker
let’s understand in detail.
Full-time Broker:
The broker gives you the full time of his knowledge, technique, strategy to identify the Investment opportunity as well as tips of stock, for you and they take the brokerage for that.
If your broker is honest then you will be making money. If your broker thinks about himself then you will be making money for the broker. (What is a Stock Broker? Different types)
This broker gives you the big benefit and also the big loss. But commonsense is that if any broker work for himself so be careful with this type of broker to avoid the big loss. Choose carefully this type of broker.
Discount Broker:
This Broker is not working for you. They will provide you with his Demat account and trading account.
In this case, you have to identify your Investment and trade on his provided platform. In benefit of this broker is that you will avoid bad advice and loss from the broker. (What is a Stock Broker? Different types)
This type of broker is benefited from his charges and takes minimum charges as compared to a full-time broker.
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This is all about the What is a stockbroker and the Different types of the broker.
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What is the Stock? it’s advantage and disadvantage.
What is the Bond in Stock Market?
Hello friends, myself Laxman, today in this article we see what is the bond in the stock market and also its advantage and disadvantage. How we make money from it. What is the function?
let’s see in step by step:
What is the Bond:-
Bond is the financial instrument and also called the IOU. Bond is printed on fancy paper with a doodle around the border and the artwork at the top, but its purpose is the pure as the IOU purpose.
it’s is the record of that fact you have loaned money to someone else. It shows the amount of the loan and the deadline for that for paying it back. It gives an interest rate that the borrower has to pay. (What is the Bond in Stock Market)
When you buy a bond. it means you are not purchasing anything. you are simply making a loan. The seller of the bond is also called the issuer, is buying your money, and bond is the also prove that the deal has happened.
Advantage of Bond:- What is the Bond in Stock Market?
- A bond is a little riskier than a Stock
- getting regular interest on the bond
- when a company goes bankrupt you will pay first then the other people like stock-owned people.
- Bond gives average return when you got bonds maturity. (What is the Bond in Stock Market?)
The disadvantage of Bond:- What is the Bond in the Stock Market?
- When you sell the bond before maturity i.e. premature you get very less money than you pay for the bond. because the bond market also goes up and down so for that.
- When a company goes bankrupt you lose a lot of money.
- limited amount of money get in the form of interest but its bond is long years the inflation eat the all money and value of bonds and money.
- The biggest disadvantage is Inflation.
When you buy the bond first of all research that issuer(or company) to have the ability to pay the return our money.
Junk bonds:
The higher risk of bonds is also called junk bonds. They have the ability to lose your all money. this is about junk bonds we see in the preferred bonds article. (What is the Bond in Stock Market)
This is all about the What is the bond, its advantage, and disadvantage.
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