Whenever a major financial market crash occurs, why is it that (as shown in movies) the stockbrokers are shitfaced at the end? The investors should be fucked right? Why the stockbrokers, who just buy and sell for the investors?
In: Economics
The investors are the ones who are paying tho brokers salaries. It is not unusual for brokarage firms to scale down their operations when investors lose money because there is less money going around. Especially the brokers who lost more of the investors money then others. And that is assuming the investors will not just sue their brokers outright for losing their money. Or the investors may go bankrupt with outstanding debt to their brokers. But you are right that the stockbrokers are not the ones with the most to lose and will usually not be the ones who are first in line at the window. Both individual traders and fund managers have a lot more to lose on the stock exchange.
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