We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Know Your Client

Categories: Ethics/Morals, Trading

Brokers and investment advisers are legally obligated to know their client.

That doesn't mean they know how a client takes their coffee or what they really think of Magic Mike. It means that they understand the client's goals, financial situation, and comfort levels when it comes to risk. Knowing this stuff lets the pros make good investment decisions on behalf of the client and lets them offer the right advice. 

Find other enlightening terms in Shmoop Finance Genius Bar(f)