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1.
Your financial planner, who is also a licensed stockbroker, receives 2 percent of the amount invested in a mutual fund from the mutual fund company. This is known as _______.
A commission. Some planners who are also licensed insurance agents, stockbrokers, or financial advisors get paid by receiving a percentage of what you invest from the underwriter or investment company.
2.
Before you can begin making a financial plan, your financial planner must examine _______.
All of the above. A planner will look at all of these in the beginning.
3.
Within certain limits, a stockbroker can offer financial planning advice.
True. Though they don't enjoy the same advice-giving privileges as registered investment advisors, they are allowed to give some advice, within guidelines.
4.
People who are not registered as investment advisers can legally give investment advice.
True. However, they cannot legally be paid for it.
5.
Which of the following areas should you ask your financial planner about?
All of the above. You should ask your planner about his or her experience, licenses held, services offered, charges, and his or her approach to planning.