Category: Investing
Investment Broker
An investment broker acts as an intermediary between buyers and sellers of investments. Investment brokerage requires a license. Buyers and sellers instruct their investment brokers to execute trades on their behalf and in return they pay their broker a commission. Some of the most famous investment brokerage firms are Charles Schwab, Smith Barney and Merrill Lynch.
Types of Investment Brokers
Investment brokers are classified into the following types:
Retirement Calculator
A retirement calculator is a device that helps to project the exact amount that an investor has to save as well as the duration to do so in order to provide for a specific level of retirement expenditure. Some retirement calculators consider a constant rate of return. This is an appropriate tool for safe investments. Other retirement calculators consider volatility and decide whether a particular plan of saving and investing for retirement will outlast the retiree’s expenditure.
Contrarian Investor, Contrarian Investing
A contrarian investor is one who believes in going against the conventional wisdom of investing for makingprofits from an investment. Contrarian investing revolves around the concept that crowd behavior among investors could lead towrong and exploitable pricing in the securities markets.
Growth Investing, Growth Investor
Growth investing is a strategy that involves investing in stocks that have above-average growth potential. Such investments are carried out even when the price of such shares appears high in terms of the price-to-earnings orprice-to-book ratios. An investor adopting the growth investing strategy is known as a growth investor.
Investment Services
Financial institutions and professional financial advisers offer a host of investment services that are focused on helping their clients meet predetermined financial goals. These investment services may be customized to a client’s income levels, circumstances and objectives and focus on wealth creation and protection. Investment services include making, organizing and managing investments and may also encompass financial planning, accounting, life insurance and tax planning.
