There are different types of service providers that can assist investors through financial matters. A stock broker, for instance, is an investment representative who advises clients through transactions in the equity markets. Another type is a consultant to large institutions who helps investors accomplish financial objectives. On a smaller scale, a financial professional could lead individuals and families through long-term planning so that wealth is not lost but instead grows throughout changing economic cycles. An investment representative could maintain some of the same client relationships and become involved with major financial decisions that affect a business or family for years to come.
Full-service stock brokers become especially valuable when the equity markets are increasingly volatile and unpredictable. These professionals complete security transactions for investors. Most investors do not buy and sell equity securities directly from the issuing company and instead turn to investment representatives, such as a brokers, to obtain exposure to the markets.
A full service broker also offers market and economic guidance to clients. The advice could surround individual stocks as well as any risks or possible profits that could be associated with the current environment. If an investment representative is aware of a client's tolerance for taking chances, he or she may agree to respond buy purchasing or selling stocks when the market value on certain securities reaches a certain price threshold.
It's common for a large institution to turn to a financial consultant, which is another type of investment representative, before making major decisions that will affect the future of that firm. Consultants are trained financial professionals who are typically well versed in the way that the markets operate. Subsequently, they are able to offer perspective to major investors, such as retirement funds, who rely on investment performance for the viability of a product or service. Consultants often devote a large portion of their time to educating clients about market choices as well as developing relationships with third-party investment firms that ultimately manage assets on behalf of investors.
When an individual or wealthy family is interested in allocating financial resources to the markets, they might turn to an investment representative such as a wealth manager. This professional is qualified to perform some of the same tasks as a stock broker as well as make changes to a client's investment portfolio. The breadth of services offered by wealth managers tends to be comprehensive. An investment professional takes on a responsibility to make major decisions that are in the best interest of the client for events including retirement, education, and preserving assets for future generations. Wealth managers may be involved with directing money across different investment categories, including stocks, bonds, and certain non-traditional securities, including real estate.
