$120k there is close to starvation unless they have roomates! not sure what investment banker does... I'll resch, I hear the term, but no idea. I think they go for young, smart, burn them out... those people look to find a way to make the big $.
I highly suspect there are alterior motives behind the scenes. That is.. someone calls up and says "dump my stock, I'll pay you more". They call their customers to sell it and make it sound like they believe it is a good thing. E. g. they are buying and selling, but they don't care about hteir customers, only the commission. Just like a car salesman. Valid viewpoint?
I read one of Peter Lynch's books. He talked about that a little. The agents do get perks to sell the flavor of the day, meaning whatever stock was being pushed that day, or week. He didn't go into why a stock was selected, but it may be the reason you said. It may also be that the brokerage itself wanted to increase or decrease it's holdings. That's speculation though. I just know that the agents get perks for buys/sell of a particular stock.I don't think there are too many of the old style brokers any more - the type who represent their clients and try to do what's best for them. Financial advisors and planers partly took over that role. I suspect people with large accounts can still get a broker who acts in on their behalf.I've had a couple of agents who I thought were legit. One was back in the 80s. The other more recent, like early 2000s. I wish I had listened to that one when he told me about Sirius XM back when nobody had ever heard of them.With that first broker, I got recomendations of several stocks every now and then. I did an analysis of those stock a few years later. The average of those stocks did quite a bit better than the market as a whole.
That sounds right! Sometimes they are in the system and see what's coming, doing the research, other times they are pushing junk... selling. they recently re-evaluated and decided not to be fiduciaries... they don't represent the customer.
Well nowadays they are basically just salesmen, selling their service. They don't even care if you buy or sell. As long as you trade they get commission. But real agents who try to do good by you still exist.Most people today do their own picks and trade online any more. So it's all moot since they don't even have a broker. But even in the old days, it was stupid to take an agent's word for it. They make recommendations, and you should do your own research.
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