Best Response of the Day

[JohnH]

I've been doing some research on a quirky OID instrument that one of my clients bought, and I ran across this exchange on an investment forum. The investor was complaining that his broker couldn't explain the inner workings of something she had sold him. Not so much the tax consequneces, but she couldn't explain how it was that he received so much less than originally promised, other than to tell him to read the prospectus.

The best response was something along these lines:
"She knew enough about it to get you to buy something neither of you understood, and she knew enough to convince you to keep it. That's how it works in this business."

[RitaB]

That's about the size of it

The best response was something along these lines:
"She knew enough about it to get you to buy something neither of you understood, and she knew enough to convince you to keep it. That's how it works in this business."

You couldn't have picked a better time to share this. I've been trying to get a broker to call me for three days. I finally found his e-mail address, sent him a message. He responds that he has called me twice, no answer, and no voice mail.

Well, well, well. I do too have voice mail, Buster. Check the number you are calling.

He called back. At 5:26 am.

[JohnH]

You know, before I'd buy something I didn't understand, I think I'd just put it in my mattress.

And from the looks of some of these investment schemes I've seen lately from big-name brokerage companies, that would be the most profitable thing to do.