Chapter 15b - Selecting a broker Brokers and analysts tend...

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Selecting a broker Brokers and analysts tend to be overly optimistic May encourage frequent trading to increase their commissions Should remind you of tax effects of selling Purchasing or Selling Stocks (cont’d) Focus on Ethics: Bias in Analyst Recommendations Tend to be overly optimistic May be reluctant to make sell recommendations Analysts must disclose ownership of stocks they recommend You can review your broker’s history online Brokerage commissions Discount brokerage firm: a brokerage firm that executes your desired transactions but does not offer investment advice Full-service brokerage firm: a brokerage firm that offers investment advice and executes transactions Financial Planning Online: Analyst Recommendations Go to: http://finance.yahoo.com/?u This Web site provides analyst recommendations about a stock that you specify. Type in the stock’s symbol, and then click on “Research Reports”
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Chapter 15b - Selecting a broker Brokers and analysts tend...

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