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Introduction > SECOND FALLACY—“IF THEY KNEW SOMETHING, THEY’D TELL YOU”
SECOND FALLACY—“IF THEY KNEW SOMETHING, THEY’D TELL YOU”
Forty-three years ago, when I began following stocks, I was sure a brokerage firm could and would help me a lot. After all, wasn’t that what they were in business for? Finally I got it; they are in business to make money (generate commissions) and despite what they say or do, brokers that generate huge commissions get huge rewards. The incentive is all about commissions, not customers.
Doubt that? Then explain away that Citicorp, Merrill Lynch, and a few of the other big boys were fined $1.4 billion for issuing biased ratings on stocks to lure investors.
Hmm ... why didn’t the FTC have them place all those warning labels on their ads and their golf and tennis tournament promotions?