In getting recommendations from brokers and analysts, you need to be careful that frequent suggestions to buy or sell are not being made to generate revenues for these traders.

Question

Quizplus · Accepted Answer

Brokers and analysts may have a conflict of interest in making frequent buy/sell recommendations, as they may generate revenues for themselves through transactions. As such, it is important to consider the source of recommendations and do additional research before making investment decisions based solely on these recommendations.

In Getting Recommendations from Brokers and Analysts, You Need to Be