Which one of the following statements is correct?
A) Most brokerage agreements require disputes be settled in a court of law.
B) Arbitration is a formal legal process for settling disputes related to brokerage accounts.
C) Churning is the preferred method of providing deep-discount brokerage services.
D) Discount brokers only provide order execution services.
E) Full service brokers frequently provide financial planning services to clients.

Question

Quizplus · Accepted Answer

Full service brokers typically offer a range of services, including financial planning, investment advice, and research. They may also offer services such as estate planning, tax advice, and insurance recommendations. None of the other statements are correct. Most brokerage agreements have a clause for mandatory arbitration, churning is an illegal practice, discount brokers may offer additional services like online trading platforms and research tools, and arbitration is a formal legal process for settling disputes.

Which One of the Following Statements Is Correct