If combine this with the fact that
inflation reduces the value of money over time, you are just loosing money if
you do not invest wisely without understanding brokerage
and inflation. A
stockbroker earns a commission on whatever transaction you make. Suppose you
make a transaction of Rs.2000, and the stockbroker charges you a 3% commission,
then you have to pay the stockbroker Rs.60 for the transaction. So your total
investment in the transaction in not Rs.2000. The total investment in the
transaction is Rs.2060/-Brokers make money on whatever transaction you make.
Whether you buy or sell, brokers will make money. Because brokers basically
make money on transactions.....