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Finance: What is Acting Against Recommendations? 2 Views
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Description:
What is Acting Against Recommendations? In the financial world, if an investor is acting against recommendations, they are not listening to a recommendation made by their fund manager, financial advisor, or the individual who is handling their finances. For example, the advisor used their expertise to recommend that the investor sell shares of a failing company, and the investor thinks it will bounce back and decides not to.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Careers
- Terms and Concepts / Derivatives
- Terms and Concepts / Econ
- Terms and Concepts / Education
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Index Funds
- Terms and Concepts / Investing
- Terms and Concepts / Managed Funds
- Terms and Concepts / Metrics
- Terms and Concepts / Mutual Funds
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
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- Terms and Concepts / Wealth
Transcript
- 00:00
finance a la shmoop what is acting against recommendations hmm
- 00:08
let's say you head to the emergency room with stomach pains the doctor in charge [Man driving fast with stomach pains]
- 00:12
says yep you've got appendicitis but I'm brutally
- 00:16
tired so I recommend you go home well odds are if the doc himself had [Doctor in pain with stomach pains]
- 00:22
appendicitis he'd get someone to take that puppy out stat acting against
Full Transcript
- 00:27
recommendations is kind of like that just in the financial world if your
- 00:31
broker tells you to do something he wouldn't recommend for his own [Man discussing finance with his broker]
- 00:35
investments well he has a duty to tell you that he wouldn't do that same thing
- 00:39
in his own case that usually happens when some bonehead tells a broker, hey I
- 00:44
want to bet my life savings on this new IPO well why would anyone act against
- 00:48
recommendations well in the case of the doc maybe he's so tired that he's a [Doctor holding scalpel and falls to the floor]
- 00:53
dangerous menace in the O.R... In the case of your broker well maybe there's
- 00:57
something about your specific situation that makes acting against recommendation
- 01:02
the way to go well as long as they tell you that it's against recommendations
- 01:06
well, they're legally in the cure just don't ask that broker to perform
- 01:10
your kidney transplant [Broker walks into office]
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