Section 5. Getting Started
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This article is from the What Every Investor Should Know.
Section 5. Getting Started
Once you have reviewed your personal financial circumstances and goals and have decided that a securities investment is appropriate for you, you will be ready to take steps to select a brokerage firm and open an account.
Securities broker-dealer firms come in many shapes and sizes. Firms that do business with public investors generally must be registered with the SEC and must abide by the securities laws (federal and state), SEC regulations and the rules of the SROs to which they belong. All broker-dealers must adhere to certain standards of timeliness, efficiency, and accuracy of record keeping. For example, customers have the right to expect that trades will be promptly executed whenever a market exists and that the broker will use all reasonable means to secure the best price. Customers should expect to receive written confirmation of trades executed, with information including the date of the transaction, the identity of the security bought or sold, and the number of shares, units, or principal amount of the security. They should expect to receive from the broker-dealer disclosure as to the cost of the actual transaction, including commissions charged, and the capacity in which the firm was operating (such as agent, principal, market maker).
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