Who is an Authorised Person? | Angel Broking

Summary

This video provides an overview of authorized persons (APs) in the stock market, explaining their role as agents for stock brokers, such as Angel Broking. APs are responsible for bringing new clients to the brokerage and facilitate trading at the exchange. It clarifies that APs differ from sub-brokers and emphasizes the importance of understanding the inherent risks associated with investments in the securities market. Viewers are encouraged to read all related documents carefully before investing.

Takeaways

• 😀 Retail investors often need intermediaries, such as stock brokers, to trade in the stock market.
• 📈 Stock brokers, like Angel Broking, play a crucial role in connecting investors to the market.
• 👤 Authorized Persons (APs) are stock brokers responsible for bringing new clients to the stock broker.
• 🗣️ APs act as agents for stock brokers, facilitating trades for individual investors.
• ⚠️ It’s important to distinguish between APs and sub-brokers, as they have different roles.
• 📊 The securities market involves inherent risks that investors should be aware of.
• 📚 Investors should carefully read all related documents before making investment decisions.
• 🔗 The relationship between APs and stock brokers enhances the trading experience for investors.
• 💼 Authorized Persons help expand the client base of stock brokers through their network.
• 💡 Understanding the role of APs can aid investors in making informed choices when trading.

Q & A

What role do authorized persons (APs) play in the stock market?

Authorized persons act as agents for stock brokers, helping to bring new clients to the brokerage and facilitating trades on behalf of investors.

How are authorized persons different from sub-brokers?

Authorized persons are directly associated with stock brokers and have the authority to trade at exchanges, whereas sub-brokers operate under a different framework and may have more limitations.

Why do retail investors need intermediaries like stock brokers?

Retail investors often lack the resources or knowledge to trade directly in the stock market, so intermediaries like stock brokers provide essential services to facilitate their trades.

Can authorized persons trade on behalf of their clients?

Yes, authorized persons can trade at exchanges on behalf of clients, acting as representatives of the stock broker.

What is the primary responsibility of an authorized person?

The primary responsibility of an authorized person is to attract new clients to the stock broker and assist them in executing trades.

What should investors be aware of when investing in the securities market?

Investors should be aware that investments in the securities market are subject to market risks, and it is crucial to read all related documents carefully before making investment decisions.

How do authorized persons benefit stock brokers?

Authorized persons help stock brokers expand their client base and enhance their market presence by bringing in new investors.

What is the significance of reading related documents before investing?

Reading related documents is significant because it helps investors understand the risks involved and the terms associated with their investments, ensuring informed decision-making.

Are authorized persons regulated in the same way as stock brokers?

Yes, authorized persons are typically subject to regulations similar to stock brokers to ensure compliance with market standards and protection of investors.

What should a retail investor consider before choosing an authorized person?

A retail investor should consider the authorized person's credentials, experience, and the reputation of the associated stock broker before making a choice.