@duke wrote:@mono wrote:@Investor99 wrote:Brokers are not banks how can a broker firm give credit, because the brokers firms were not monitored the credit amount in the CSE sky rocked.
Banks are regulated and monitor institutes which are allowed to provide credit to clients by the central bank. It would be a joke if any organisation is allowed to give credit.
As per the rules brokerages are allowed to give out credit in the same way a leasing firm is allowed to give out credit. And the brokerages are definitely monitored.
Problem is these broker crooks are greedy and crafty. They're not checking whether this person has paid the dues before. They only think about the transactions. One thing they do is when the deadline comes for credit reports they sell the stocks and buy back so that they don't go for the report. A good broker will not allow a person who did not settle his dues to buy more after.
i don't think this selling and buying thing can be done that easily en masse without crashing the market.