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1.
You will make more money using a full-service broker because of their knowledge and expertise than you would by going it alone.
False. While brokers may have more financial education and expertise, they are not clairvoyant. You have as good a chance at making money investing by doing your own homework carefully.
2.
A full-service brokers commission is based on the total value of holdings in the customers account.
False. Commissions are fees levied on each transaction the broker processes for the customer.
3.
Full-service brokers can offer all of the following services except _______.
Tax preparation. Preparing taxes is not one of the services of a full-service broker, but all of the other listed options may be.
4.
Brokers are allowed to give limited tax advice.
True. Brokers can advise you on investments that will limit your exposure to taxes.
5.
Brokers may also be known as _______.
Any of the other titles. They all refer to brokers.