ransactions involving buying and selling securities are conducted through stockbrokers, who are also known as account executives or financial consultants. When choosing a stockbroker, investors have three primary options: full-service brokers, discount brokers, and online brokers. Brokers who offer a complete array of services such as advisory services along with executing client’s transactions are called . While some brokers still operate exclusively in person or online, the distinction between the three types has become increasingly over the years. The chart that follows shows fees imposed by different discount brokers; as you can see, of them offer both online and broker-assisted trades. Broker ShareCo AmeriTrading TradeBuilder ShareFunder eExchange Commission for Online Trades Market Order Price $7.95 $9.99 $7.95 $9.95 $9.99 Limit Order Price $7.95 $9.99 $7.95 $9.95 $9.99 Commission for Broker-Assisted Trades Market Order Price $20.00 $44.99 $32.95 $19.95 $54.99 Limit Order Price $20.00 $44.99 $32.95 $19.95 $54.99 Because the fees charged for broker-assisted trades , it is shopping around before choosing a broker. Suppose you are a serious investor with large amounts of capital and prefer to deal directly with an in-person stockbroker. Which of the following statements regarding your options are true? Check all that apply. Choosing a discount broker can save 30–80% of the commissions charged by full-service brokers. You can reduce the commissions you pay to brokers by purchasing “odd lots.” Full service broker is a better option than online brokers for those who want services beyond simply executing trades. If you want a full-service broker, it’s wise to choose someone you can get to know socially.
ransactions involving buying and selling securities are conducted through stockbrokers, who are also known as account executives or financial consultants. When choosing a stockbroker, investors have three primary options: full-service brokers, discount brokers, and online brokers. Brokers who offer a complete array of services such as advisory services along with executing client’s transactions are called . While some brokers still operate exclusively in person or online, the distinction between the three types has become increasingly over the years. The chart that follows shows fees imposed by different discount brokers; as you can see, of them offer both online and broker-assisted trades. Broker ShareCo AmeriTrading TradeBuilder ShareFunder eExchange Commission for Online Trades Market Order Price $7.95 $9.99 $7.95 $9.95 $9.99 Limit Order Price $7.95 $9.99 $7.95 $9.95 $9.99 Commission for Broker-Assisted Trades Market Order Price $20.00 $44.99 $32.95 $19.95 $54.99 Limit Order Price $20.00 $44.99 $32.95 $19.95 $54.99 Because the fees charged for broker-assisted trades , it is shopping around before choosing a broker. Suppose you are a serious investor with large amounts of capital and prefer to deal directly with an in-person stockbroker. Which of the following statements regarding your options are true? Check all that apply. Choosing a discount broker can save 30–80% of the commissions charged by full-service brokers. You can reduce the commissions you pay to brokers by purchasing “odd lots.” Full service broker is a better option than online brokers for those who want services beyond simply executing trades. If you want a full-service broker, it’s wise to choose someone you can get to know socially.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transactions involving buying and selling securities are conducted through stockbrokers, who are also known as account executives or financial consultants. When choosing a stockbroker, investors have three primary options: full-service brokers, discount brokers, and online brokers.
Brokers who offer a complete array of services such as advisory services along with executing client’s transactions are called .
While some brokers still operate exclusively in person or online, the distinction between the three types has become increasingly over the years. The chart that follows shows fees imposed by different discount brokers; as you can see, of them offer both online and broker-assisted trades.
|
|
Broker
|
||||
|---|---|---|---|---|---|
|
ShareCo
|
AmeriTrading
|
TradeBuilder
|
ShareFunder
|
eExchange
|
|
| Commission for Online Trades | |||||
| Market Order Price | $7.95 | $9.99 | $7.95 | $9.95 | $9.99 |
| Limit Order Price | $7.95 | $9.99 | $7.95 | $9.95 | $9.99 |
| Commission for Broker-Assisted Trades | |||||
| Market Order Price | $20.00 | $44.99 | $32.95 | $19.95 | $54.99 |
| Limit Order Price | $20.00 | $44.99 | $32.95 | $19.95 | $54.99 |
Because the fees charged for broker-assisted trades , it is shopping around before choosing a broker.
Suppose you are a serious investor with large amounts of capital and prefer to deal directly with an in-person stockbroker. Which of the following statements regarding your options are true? Check all that apply.
Choosing a discount broker can save 30–80% of the commissions charged by full-service brokers.
You can reduce the commissions you pay to brokers by purchasing “odd lots.”
Full service broker is a better option than online brokers for those who want services beyond simply executing trades.
If you want a full-service broker, it’s wise to choose someone you can get to know socially.
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