Series 66

By Investopedia AAA

Analyzing Your Client's Financial Profile - Non-Financial Considerations

A number of non-objective issues can affect what investments and strategies are appropriate for a particular investor:



  • Investor knowledge and sophistication
  • Client values
  • Client demographics

Exam Tips and Tricks
Consider this sample exam question:



  1. The risk tolerance of the client is NOT a factor to consider when making investment recommendations to which client type(s):
    1. Trusts
    2. Estates
    3. Limited partnerships
    4. Accredited investors
    1. IV only
    2. I and II only
    3. I, II, III & IV
    4. None of the above
The correct answer is "d": risk tolerance must be considered for all investors, even institutional ones.
Introduction
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