What personal characteristics should you look for in a full-service broker and why are they important?
What will be an ideal response?
Answer:
1. a reputation for integrity, intelligence, and efficiency
2. experience in both up and down markets
3. one who understands your investment philosophy
4. one who allows you to say "no" without undue pressure
5. one who is upfront with total costs
All of these qualities are important in representing my best interests and not the interests of the broker or brokerage firm. It is crucial for a broker to know the markets over the long term as well as the short term. He or she must understand what my goals are, not just his or hers. A broker must be an efficient and cost-saving person to allow me to continue to trade. All of these qualities point to an ethical person who will be around for a long time to assist me and many others.
You might also like to view...
The industrial relations school of thought rests on the assumption that labor market outcomes are determined by:
A. The laws of supply and demand. B. The relative bargaining strength of parties to the employment relationship. C. Government intervention and determination of outcomes. D. Worker protests and militant actions.
The affective steps of AIDA are ________.
A. desire and attention B. aspiration and action C. attention and interest D. decision and action E. interest and desire
Neef Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,302,000 $1,330,000 Total stockholders' equity$885,000 $880,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,420,000 Cost of goods sold 890,000 Gross margin 530,000 Operating expenses 493,000 Net operating income 37,000 Interest expense 17,000 Net income before taxes 20,000 Income taxes (35%) 7,000 Net income$ 13,000 The company's gross margin percentage for Year 2 is closest to:
A. 37.3% B. 59.6% C. 4076.9% D. 2.5%
Which of the following is a drawback of the maximax criterion?
a. It ignores the payoffs associated with the “high demand” state of nature. b. It ignores the payoffs associated with the “low demand” state of nature. c. It is not a good method to use when the states of nature are not equally probable. d. It ignores the maximum payoff that could be realized if the decision maker were a risk taker.