The individual who facilitates the buying and selling of securities on behalf of the customer.
Completes both client transactions and often acts as the other side of the trade by selling from their own inventory of shares/funds.
Investment advisors and Financial Planners are held to the fiduciary standard are obligated to put their client’s interests above their own.
An individual who helps people look at their financial picture and help them make a plan as to the best way to proceed with their resources. This person is usually paid an hourly fee/flat fee for financial advice, may not necessarily trade in the investor’s portfolio
The Financial Industry Regulatory Authority. FINRA is a nonprofit government agency that oversees brokers to help ensure that they are operating fairly.
Manage client investments in exchange for a fee, generally in the form of a small annual percentage of the client’s account. Investment advisors are not allowed to share in profits as compensation.
The US Securities and Exchange Commission is an independent federal agency that protects investors.
An individual who buys and sells securities on behalf of a client. Generally stock brokers get paid through a commission or mark-up on trades they execute.
Investment advisors that are held to the suitability standard are only required to make suggestions that align with the client’s best interests. Rules concerning conflict of interest disclosure are not as stringent as they are with the fiduciary standard.
CFP® certification is a voluntary certification granted in the United States by Certified Financial Planner Board of Standards, Inc. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. Individuals who become certified are required to complete continuing education.
The glossary terms displayed on our website are solely for information purposes. Nothing contained herein should be considered as investment advice. The terminology and definitions provided on our website derive from third-party sources believed to be reliable and accurate at the time the information was retained. Morris Financial Concepts, Inc. is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. For questions or to report in known material inaccuracies, please contact us.