Question

write a complete answer,

Imagine you were given $10,000 and you were told to invest the amount in one stock. What stock would you pick? How would you go about evaluating the stock. Be specific.

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ignore that question and answer this,

Why would someone choose the services of a full service broker versus a discount broker? Which do you prefer?

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Answer 1

1) FULL SERVICE BROKERS; These firms charge high commissions on a percentage of traded value from traders. They offer diversified financial services. They usually have their own research and investment banking that provide their own analyst recomendations, products and access to ipo's. Theyalso provide asset management, advisory and financial planning seervices. They usually have a physical location/offices. 2)DISCOUNT BROKERS; They carry out buy and sell orders at a reduced commission rate. The commissions are minimal and done for trade executions only. They charge on flat basis that is per transaction. But these brokers donot provide investment advice or perform analysis on clients behalf like a full time trader. As i trade regularly and in large quantities with a small margin i will go with discount brokers due to less brokerage.