The duration of an investment is a major factor to consider when investing. Strong management can allow sound guidance on how to capitalize on the different opportunities. Knowledgeable brokers have learned to analyze charts by estimating the future values of individual stocks. Since the stock market follows an equation, some b

Through experience I have noticed that most individual investors invest in stocks or mutual funds. They call their brokers to either ask for advice on which stocks to buy or suggest ones recommended to them. I believe that brokers should take a stronger position in the funds of their clients. They should contact their clients and recommend when to buy and sell and what stocks to invest in. Arguments can be made that they should be the ones calling the shots because of their so called expertise. Certain individual companies take a percentage of the earnings. This provides strong motivation to make sure every account is excelling even in bear markets. Most brokerage firms charge a flat rate for the process of each trade. Whether the individual makes or loses money the brokerage firm always collects a fee. Trust in the broker in paramount when an individual’s money is at risk. Conversely, to satisfy the individual investor wanting to make their own decisions, brokerage firms have been established that charge lower fees while still providing comparable services when desired.

Analysts go through each major company on the exchanges and grade them on a scale. Recently, investors have prosecuted analysts in court for damages based on poor recommendations. For example, in a recent court case, “Jack B. Grubman, a former star telecommunications analyst, told a friend last year that his boss, Sanford I. Weill, the chairman of Citigroup, helped to secure spots in an exclusive Manhattan nursery school for Mr. Grubman's daughters after he began recommending that investors buy AT&T stock.” ()This analyst continues to recommend AT&T stock to investors as a strong buy even when the stock was falling from around 82 to 20. There was a trade for the recommendation in this case. In many cases, internet analysts continued to upgrade technology stocks while they dropped from the high value range to being worthless. The price targets they were predicting were basically because of the internet “bubble” where many people thought they could get rich quick.

The New York Stock Exchange is divided into different sectors. The Dow Jones Industrial Average, (DOW or DJIA) is an average of thirty blue chip companies. A major rise or decline can occur depending on any single stock in the DOW producing strong or weak earnings. The Nasdaq and American Stock Exchange are the other two major exchanges. All of these indexes have numerous stocks that produce the averages each day

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