Investopedia

Continue to Site »

Blanket Recommendation

Filed Under »
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    Paying Your Investment Advisor - Fees Or Commissions?

    The way a professional is compensated can affect quality of service. Learn more here.

  2. A Close Look At Certified Senior Designations

    We examine the validity of senior financial designations and whether they are worth pursuing.

  3. Dispelling 5 Myths About Financial Planners

    Raise your returns or lower your losses; these often misunderstood specialists can help guide you.

  4. Tips For Resolving Disputes With Your Financial Advisor

    Before you blame your advisor for your losses, be sure you know your rights and responsibilities.

  5. Shopping For A Financial Advisor

    Finding your perfect advisor is as simple as shopping for a car. Read on to learn more.

  6. What is the difference between a buy-side analyst and a sell-side analyst?

    The main difference between these two types of analysts is the type of firm that employs them and the people to whom they make recommendations.A sell-side analyst works for a brokerage or firm ...

  7. How To Start Saving For Retirement

    If you establish these money-saving habits and patiently allow your wealth to build, you will be taking some huge steps forward in making your financial future more secure.

  8. What Buffett Would Say To The 50K’ers

    FOX Business Network's Liz Claman will interview Berkshire Hathaway CEO Warren Buffett in an exclusive sit-down on Monday May 6th at 9:30 a.m. following the Berkshire Hathaway shareholder meeting. ...

  9. How To Get The Most Out Of Hiring An Accountant

    When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ...

  10. Teaching Financial Literacy To Tweens

    In this tutorial we cover financial topics for children between the ages of eight and 12, from income and expenses to identy theft.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center