Obtain the phone number of a deep discount broker from a personal finance magazine or through an
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Obtain the phone number of a deep discount broker from a personal finance magazine or through an Internet search. Using the five questions presented in Checklist 12.1, "Choosing a Brokerage Firm," as a basis for questioning, interview the discount brokerage firm's representative. Based on the information provided in the interview, does the firm appeal to you? Why or why not?
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CHECKLIST 12.1 Choosing a Brokerage Firm Are you willing to pay a higher commission for investment advice? If so, a full-service broker may be right for you. Does the brokerage firm provide record-keeping services to help you calculate your taxes? Are the accounts insured up to $500,000 by the Securities Investor Protection Corporation (SIPC) against the event that the brokerage firm faces financial difficulties? Does the brokerage firm provide an 800 number and online site for transactions and quotes? Do you receive interest on idle cash in your account?
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