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1.
The following statements are true of all brokers, except for _______.
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They provide advice on stock trades. While this is a service offered by full-service brokers, discount brokers provide only transaction services.
2.
Brokers may also be known as _______.
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Any of the other titles. They all refer to brokers.
3.
Brokers are allowed to give limited tax advice.
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True. Brokers can advise you on investments that will limit your exposure to taxes.
4.
A brokerage may be able to offer checking and credit cards.
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True. Brokerage firms can offer asset management accounts that combine broker services with banking services such as checking and credit cards.
5.
Which of these investment strategies might be best executed by a discount broker?
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Buying and holding balanced mutual fund shares. A relatively uncomplicated and low-risk strategy, such as buying and holding mutual fund shares, may not require the advice of a full-service broker. With more aggressive and complicated strategies, the average investor should seek professional advice.