Christopher Best is very interested in finance, stocks, portfolio management and market practices.
Some individual investors choose to purchase stocks through brokers who make a living from the commissions they get from selling the stock. Such brokers will usually tell you that they have an extensive in-house research department and that their recommendations to buy come from the department. While it may sound good, in reality this model has significant flaws.
The biggest problem is a huge conflict of
interest. If a broker makes money from selling you stock, they are
interested in selling you as much stock as possible, not in you reaching
your financial goals. In many cases, brokers do not have to disclose
such conflicts of interest. You want to research the laws of your state
to find out about different categories of brokers and advisors that you
are dealing with. Some brokerage companies may have very impressive
names, when in reality, the names mean nothing. Oftentimes such
companies are not liable for the advice they provide. They also do not
have to get certified or tested to provide their recommendations. This
is why it is always a smart idea to know who you are dealing with, what
kinds of certifications they have and what they are liable for.
Sometimes a business can hire a brokerage or an investment bank to help sell its stock. The brokerage then needs to create an aura of positivity around the company and its offerings. Many studies of brokerage companies show that their research isn’t worth anything. If you are looking for reliable research just like what Christopher Best gets while earning his degree in finance at Florida International University, find companies that just do research and do not make a commission from selling stock.
Some individual investors choose to purchase stocks through brokers who make a living from the commissions they get from selling the stock. Such brokers will usually tell you that they have an extensive in-house research department and that their recommendations to buy come from the department. While it may sound good, in reality this model has significant flaws.
The biggest problem is a huge conflict of
interest. If a broker makes money from selling you stock, they are
interested in selling you as much stock as possible, not in you reaching
your financial goals. In many cases, brokers do not have to disclose
such conflicts of interest. You want to research the laws of your state
to find out about different categories of brokers and advisors that you
are dealing with. Some brokerage companies may have very impressive
names, when in reality, the names mean nothing. Oftentimes such
companies are not liable for the advice they provide. They also do not
have to get certified or tested to provide their recommendations. This
is why it is always a smart idea to know who you are dealing with, what
kinds of certifications they have and what they are liable for.Sometimes a business can hire a brokerage or an investment bank to help sell its stock. The brokerage then needs to create an aura of positivity around the company and its offerings. Many studies of brokerage companies show that their research isn’t worth anything. If you are looking for reliable research just like what Christopher Best gets while earning his degree in finance at Florida International University, find companies that just do research and do not make a commission from selling stock.
