Buying shares requires the help of a broker or remisier to act as a middleman for the transaction to go through.
These intermediaries bridge the gap between buyer and seller and help to facilitate the flow of trades through stock exchanges.
For years, they have been an essential cog in the stock exchanges’ ecosystems, although their role has diminished in recent years with the introduction of electronic trading systems for do-it-yourself investors.
However, did you know that brokers also provide other value-added services?
Many of them help to recommend stocks to their clients to help them along in their investment journeys.
These brokers are supported by a team of research analysts that delve into a range of companies and industries.
The analyst will write reports on the company’s prospects, valuation and also come up with a “fair value” or “target price” for where he thinks the stock price will head.
So, should you trust your broker for good stock recommendations?