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Originally Posted by OMG!WTF!
Sorry if I'm bugging for information. It's just really hard to get this info from these websites. Maybe I'm just dense. What's the difference between trading stocks for people and managing money for people? I know the theory of both but not the regulations and requirements for them.
I've also noticed the difference in regulation over the years. My first broker in the 90's was all over the place, private placements, risky stocks, loans, mortgages, debentures. My last experience a few years ago was much different...pick portfolio 1, 2 or 3 based on your risk tolerance. People I know with advisors who do pick stocks are very cautious to do so and would much rather add to a prescribed portfolio. I don't know if this is typical or if it's just my experience.
Thanks very much for the info.
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Sorry, on a bit of roll here but...
Specialization is a really big deal. You have to ask yourself who is doing the research on the company that is being picked? Who is comparing it to all the other companies out there? If it is your guy, where is his expertise and where is he spending his time? He is meeting clients, running his book, dealing with head office and compliance, etc. where is he getting the time to do all the research to come up with a recommendation?
Conversely, a portfolio manager or Investment fund manager has a large staff specializing in one particular area and asset class. They can make recommendations to a fund to cover a particular geographic or asset class. Then the fund can be tailored to fit different risk profiles. This is very efficient and can be used by many different clients. It is one approach. There are many.