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Is My Stockbroker Insane Or A Genuis? - Investment - Nairaland

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Is My Stockbroker Insane Or A Genuis? by pinokio(m): 4:26pm On Aug 20, 2007
i just opened an sba in benin city 2wks ago. im yet to recieve my cscs no. or any further documentation apart from the forms i filled, and they say this is due to the time needed to corresspond with their head office, and my stockbroker says theyve bought wema bank, unity bank, and dunlop shares for me, without obtaining my consent.
1.are the shares good?
2.should i be mad at him? please advise me
Re: Is My Stockbroker Insane Or A Genuis? by eny3: 5:23pm On Aug 20, 2007
it depends on what you agreed when u completed the forms and opened the account. some investors leave their portfolio to their broker to manage while others give buy/sell orders to the brokers. if u agreed to manage it yourself and their responsibility is just to advise you but u decide on what you want, you have every right to be mad at them.

being mad doesnt mean u have to rant and scream, u just have to be assertive dealing with the problem for it to be resolved. it is up to you if you want them to make decisions for you or you make it yourself. however most managed accounts are for high networth clients (usually N5m and above) and usually there will be a flat rate fee and performance fee for mananging the account. in your case if it is a normal broker/client relationship, they will charge you commissions for each trade you request or they make on your behalf. an unscrupulous broker can make regular trades on your account to make a lot of commisions. so i think it is better for you to give the orders if the account is commision based.

about the stocks he got for you, it depends on wat kind of investor you are. are they short term trades based on market psychology or long term trades based on fundamentals or, there are many more investment attitudes, deciding on if they are good purchases depends on the rationale behind buying it. but the companies he bought into should be the least of your problems. what you should sort out is how your account will be managed.

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