Home News Stock brokers’ business slumps 16/01/88

Stock brokers’ business slumps 16/01/88

by Business News Report

Stock brokers are having a tough time as business in stock have slumped since the deregulation of interest rates.
Brokers now complain of the confusion and negative signal deregulation has brought to bear on the capital market.
For instance, investors holding government stock, a lucrative aspect of stock brokerage now preferred to hold their stocks to trading in them. As a result business in government stock has stalled.
Investors, according to stock brokers, are now willing to sell their stock holdings at the ruling market price which is below the par value of guilt edge stocks. They are said to prefer to hold such stocks rather than sell them at a loss.
As a result of this new development most stock brokers are now losing money from commission they would have earned if investors were willing to shed of their government stock.

According to brokers no business was done on government stock throughout last week. Despite the demand for such stock there was just no supply. No investor was ready to sell its holding.

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