Basics Beginner: Broker Services

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1.
Full-service brokers can offer all of the following services except _______.
Choose wisely. There is only one correct answer.
Tax preparation. Preparing taxes is not one of the services of a full-service broker, but all of the other listed options may be.
2.
Brokers are allowed to give limited tax advice.
Choose wisely. There is only one correct answer.
True. Brokers can advise you on investments that will limit your exposure to taxes.
3.
The following statements are true of all brokers, except for _______.
Choose wisely. There is only one correct answer.
They provide advice on stock trades. While this is a service offered by full-service brokers, discount brokers provide only transaction services.
4.
A full-service brokers commission is based on the total value of holdings in the customers account.
Choose wisely. There is only one correct answer.
False. Commissions are fees levied on each transaction the broker processes for the customer.
5.
You will make more money using a full-service broker because of their knowledge and expertise than you would by going it alone.
Choose wisely. There is only one correct answer.
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.