Opening an Investment Account

After studying ones personal economic situation of having determined ones financial objectives and of deciding what are the best securities to invest in, the next step is to select a stock exchange agency in which to open an account.

Selection of a stock exchange agency
The various types of stock exchange agencies have been discussed in the previous section. Now the question is what services does one need to reach ones objectives and which agency can satisfy ones needs. To find the most appropriate stock exchange agency one has to seek it thoroughly, the first thing to do is ask a friend, a commercial partner, a lawyer or a fiscal advisor, If they know an agency with a good reputation. Recommendations of this type are worth following.

Once one has one or more names, one will have to put some time in forming an opinion about them.  Seek for professional opinions about agents and agencies. Go to the public library and ask for past issues of magazines as Financial World, Forbes, Money Maker and Barron´s. In these magazines one will find articles with antecedents about the experience, professional career and results of each agency one can make contact with. For more information of this nature one could find them in the Investor´s Business Daily, publication that usually covers all related with mutual funds investment; also, one can read the weekly column of the Wall Street Journal that is titled as “heard on the streets”, there one can read about the credit that great part of the stock exchange agents and fund investment managers deserve. And, lastly, the December edition of Financial World makes a list of the ten best stock exchange agents of the year. The third step consists in reading in the newspaper the ads that the stock exchange agencies pay for appearing on the financial sections. It is preferable to direct ones attention to those agencies that are part of the NYSE. These agencies are subject to strict norms and are carefully supervised.

The following and last step will be the selection. One will do this by telephoning each listed agency. And saying ones name, who recommended you, and which is the amount of money that one wishes to invest. Stay with the agency that shows more interest in serving clients whose income and assets are similar to ones. Also try to investigate the following extremes:

• What is the variety of services given by the agency?
• Will an agent be assigned for the service I need? (If not so, and one has the impression they are not very interested in serving one, look for another agency).
• How long has the agency functioned?
• Can one ask for research services?
• With what products (shares, debentures, options, etc.) do they work with?
• What are the margin percentages (prepayments) they work with?
• Does the agency insures the issuing of shares and debentures and offers them to clients?
• Has the agency been admonished at some time by any official organization?
• Does one feel urged by the agency? (Do not allow to be pressed by the first call or being urged to act upon immediately).

With the impressions and information obtained by the first calls, choose the stock exchange agency one feels will be the most comfortable for one.