Broking business has a strong co-relation with the markets.
When markets are in a bullish mode, the business for brokers increases.
When the markets turn bearish, their business goes down.
The cyclicality is common to markets all over the world.
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Stock broking is a sort of seasonal business.
When markets are bullish, business is good. If markets are stagnant or bearish, business is dull. This risk always remains with stock broking business.
If we go into a bearish phase because of US and global economic slowdown, all brokers will suffer.
Brokerage Companies Delaying Results?
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