 |
Definition of 'Blanket Recommendation'
A situation in which a financial professional or institution sends a recommendation to all clients to buy or sell a particular security or product, regardless of whether or not the particular asset is compatible with the client's investment goals, objectives and risk tolerance.
|
 |
Investopedia explains 'Blanket Recommendation'
Communicating to clients through a blanket recommendation is usually ill-advised because the clients solicited will have varying investment profiles. Imagine if a particular client who is retired and can't afford to lose a lot of money is the recipient of a blanket recommendation and the recommended transaction is of higher risk than what she is used to. Should the client follow the firm's advice, she stands to lose a portion of the savings it has taken her years to accumulate, which would be very difficult to replenish.
|
-
Before you blame your advisor for your losses, be sure you know your rights and responsibilities.
Read More »
-
The way a professional is compensated can affect quality of service. Learn more here.
Read More »
-
Catering to seniors is big business, but state regulators could pull the plug.
Read More »
-
|
|
