Which of the following statements regarding discount brokers is true?
A) Brokerage firms can only be full-service or discount but not both.
B) Because discount brokers concentrate only on executing orders, they are able to charge higher fees.
C) Discount brokers offer little investment information and no advice.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Discount brokers primarily focus on executing trades and typically do not offer investment advice or research, allowing them to charge lower fees compared to full-service brokers. This makes statement C correct. Statements A and B are incorrect because some brokerage firms offer both full-service and discount options, and discount brokers charge lower fees due to their limited services.

Which of the Following Statements Regarding Discount Brokers Is True