- Picking a Firm
- Opening an Account
- Types of Accounts
- The Importance of Title
- Placing an Order
- Order Duration
- The Entrance Fee
Because of the repeal of the Glass-Steagall
Act and other safety nets that were instituted during the depression of
1929, in today’s environment, many financial service companies have
overlapping products and divisions under the umbrella of their corporate
parents. Here’s a starting point for the types of firms in the marketplace.
Keep in mind that the firewalls separating the product offerings are now very vague.
– Pure banks take in deposits and originate loans. The difference between
what they pay depositors and what they charge for their loans, less
expense, is their profit. Currently banks can, and often do, offer a
complete range of competitive products across all financial services
segments. Banks like Citigroup are truly one stop financial shopping
- Brokerage Firms
– They facilitate the trading of debt and equity investments. Their
services include investment advice, research, money management, online
trading and a menu of banking and insurance products, such as check
writing, loans, margin and annuities. Excluding investment banks, there
are two types of brokerage firms:
- discount / online
- Mutual Fund
Companies – They provide
professional investment management by pooling the capital of individual
Companies – Insurers offer a
complete range of investment and insurance products, including solutions
for: Insurance, Retirement, Investing and Estate Planning needs. Their
annuities are popular investments for income orientated investors.
- Real Estate
Investment Companies – REITS are
companies that specialize in real estate and mortgage investments.
- Private Hedge
Funds – Private investment
management companies usually focus on institutional investors and wealthy
Next review information on:
Opening an Account.