BROKERS -THE MARKET MAKERS

Honky tried to figure out who the mighty market makers were.He had heard the term brokerage during his maths classes in his school days.He cursed the education bigheads of his days for not including even a single descriptive chapter about STOCK markets in his 16 years of formal education.

Bonky too accrued his views on poor education system and its guys like Bonky who fill this lacunas.So Honky caught back Bonky in his tennis court.

“Bonky! Whether broker is a kind of middle man like my house broker who take a months rent as commission to for finding a useless room at exorbitant price” questioned Honky!
“Exactly Honky..If you are not careful enough you will be inveigled by such middle mans here tooo..” said Honky.

“Let me tack you back few years in history to make you understand this broker”.Bonky and Honky hired a TIME TAXI(as if we hire an autoJ) and went back to the eighties).The driver charged them Fifty Thousand rupees for taking them back twenty years at the rate of 2500 per year.(Common guys I am attempting an ECONOMIC FICTION J).

“Bonky!! Where are we??” Shouted Honky.
Meanwhile cool and composed Bonky asked Honky to be calm and just to observe whats going on there.”Honky we are in 1986!This is the big big Wallstreet..similar to DALAL in MUMBAI..They trade shares here as if our aunties trade sarees in USMAN ROAD”

“Oh!!Who are those nerds..Holding phone and watching capriciously changing computer scenes? Bonky!” fired Honky.(I Recommend you to watch WALL STREET an oscar winning movie on STOCK MARKET).

“They are our heroes for this episode.They are the brokers…Let me just show you how it works”Bonky pulled up his grandfathers wallet(for dumb guysàHonky is trying to get a phone number of a broker in 1987?? L)and made a call”

“Hello! Ravi Today I plan to trade for 400 RS(Huge investment then!)Can you buy for me 100 shares of HINDUSTAN LEVER” ordered Bonky.

“Hello Saab!! I tell you a better option ..But Tata steels its really creeping high in recent days! You can almost double your money in three months!!” roared the other end in a flattery tone.

“Naai! Naai! Please get me what I want! I want this shares immediately in my portfolio” said Bonky in a strenuous tone.

“Honky!! This how brokers work..they are the guys who do the trading for us.Its not possible for us to trade directly.When you need to buy something all you want to do is just ring them up and place the orders and they will execute the trade for you.For doing so they will charge you some commissions.You got to be careful with this brokers.They are termed as Market makers because they advise people on what to buy and what to drop!” explained Bonky.

“Thanks Bonky I Understood the role of a broker now but I have never seen you calling those brokers!”Honky again ended up with a question .At the same time Honkys PDA warned him that its time to start for the CAT coaching classes.
Hence Honky and BONKY hired back the TIMETAXI and started traveling back to the present.

“Nowadays we do trading using ECN(Electronic Communication Networks).Those brokers are replaced by brokerage firms.Hope you would have heard of Demat accounts!!” added Bonky.



“No Bonky!! But I can guess why MBA is most sought of these days let me hear more about DEMAT and how to start trading from you tomorrow! I really thank the non-existent god for placing me near a wonderful guy like you! Bye Bonky!” exclaimed Honky.



PS:If you found it hard to read and decipher who a broker is from a big vague writing here s the NUCH CORNER where the days essence will be captured in a sentence or two,.

NUCH CORNER: A BROKER IS A PERSON WHO MAKES YOU INVEST UNTIL YOU ARE DONE WITH YOUR LAST RUPEE!!!

OPEN CHALLENGE:Find out the flaw in the above article!!(I am sure its there since I am the guy who made it JDo write to me and earn 20 points if you could detect it!)