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A Comparison of Full-Service Brokers and Discount Brokers Suggests Which

Question 128

Multiple Choice

A comparison of full-service brokers and discount brokers suggests which of the following?


A) Discount brokers are almost always the best choice because most investors are knowledgeable enough to handle all types of transactions without the extra services provided by full-service brokers.
B) Most investors should avoid either type of broker and buy their stocks by placing their own orders directly with the exchanges.
C) Competition has blurred the distinction between the two types of brokers.
D) Full-service brokers are almost always the best deal. They cost a little more, but they provide significant additional services.

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