What Stockbrokers may not tell you(2)
January 26th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Box Holding
Also a stockbroker would not tell you his box-holding. Box holding means what the stockbroker invests in a company. That is the holding of the stockbroking firm on their own.
What this means technically is that a stockbroker/dealer can buy for himself and others. So when you buy for yourself we call it box-holding. So if you ask a stockbroker what is your box holding like, he may not want to tell you. And definitely so what he will hold as box holding will be hybrid stocks. He will make sure he gets the box stocks to his holding otherwise.
Why is he there, making other people rich only for him to sit down. So, if you will be able to know what a stockbroker is investing for himself, invest there. Definitely you will make a lot of money there. But it is very difficult to get this from a stockbroker. You ask him may I know your holding, he will look at you and laugh and say what do you want to do with that. But all the same a good stockbroker is to guide you as to what stocks to buy.
Some of them may be part of the box holding of his house. He may not tell you this is our box holding and this is the volume we have there. But he guides the investor to where he can make money because when he does that two things will happen.
He will remain with you and bring others. If you guide him wrongly, he will leave you and he will tell others. No stockbroker would want his clients running away from him. But it is very difficult for a stockbroker to tell you precisely his own holding. He may not tell you that. What I mean is box holding, not he as a person, but as a company. What they are investing in, a stockbroker may not tell you that.
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