Discretionary authority allows your broker to invest your money without consulting you about the price, the type of security, the amount, and when to buy or sell.
True
False
2: It is inappropriate to ask your investment professional how much he/she is getting paid.
True
False
3: Investing makes it possible for your money to work for you.
True
False
4: You should compare your investment’s performance against an index of similar investments over the same period of time.
True
False
5: Churning is legal.
True
False
6: You should make sure the investment professional and her firm are registered with the SEC and licensed to do business in your state.
True
False
7: A discount brokerage charges higher fees and commissions for its services than what you’d pay at a full-service brokerage.
True
False
8: A full-service brokerage fees and commissions do not pay for a broker’s investment advice based on that firm’s research.
True
False
9: When you purchase shares of a mutual fund, the fund must provide you with a prospectus.
True
False
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