Intro to the Stock Market: Know Your Guide

Don Garton |

Investing today offers more options for people than ever before. There are several main routes you can take when investing and it is important to know who is guiding you and what their motivations are.

Some people enjoy researching stocks and changes in the market. They simply want a legally authorized party to handle the transactions. A discount broker is a conduit between the consumer who wishes to purchase and the party who is selling the stock. The discount broker works on commission, so it is in his or her best interest to make as many transactions as possible. There may be little or no discussion about the purchase (or sale) because the client is confident he has done his homework.

Most people, however, want more guidance. A full-service broker is licensed by the Financial Industry Regulatory Agency (FINRA), and is obliged to take a good look at proposed transactions and answer the question: “Is this investment consistent with the best interests of the client?”

For Certified Financial Planners (CFP) and Registered Investment Advisors (RIA), the professional standard is even higher, requiring that a client’s best interest must always be put first. Investopedia has an  informative article  regarding the distinctions.

Which would you prefer, someone who always looks out for your best interests, someone who might consider their own best interest before yours, or someone who is being paid by you to only execute trades?

For me, the distinction between AIM’s services and other options can be summed up in 3 concepts: experience; professional responsibility and integrity; and impartiality. I want clients to be involved in their financial future. My goal is that, with each interaction a client has with Advantage Investment Management, he or she becomes more informed about investing, and more comfortable with the entire process.

 Ready to get started? Give our office a call at 502-212-3000 and schedule your Complimentary Portfolio Review today!