Practice Test 2

Passage 1:

One of the most difficult things for people looking to get involved in the stock market is simply getting started. There are so many brokers competing for clients that it can be hard knowing which one to choose. Questions abound. Should you get a broker with many clients or one with just a few? Should you get a broker who specializes in bonds or mutual funds, or should you find one who doesn’t specialize in one area of the market? Should you find a broker at large firm or one who works for a smaller place? These are just some of the questions people have. Unfortunately, for many, the questions are so overwhelming that they eventually give up and don’t ever bother investing in the market.

Giving up is something that no one should ever have to do. Just follow a few simple steps, and you shouldn’t have any problem in finding the broker who is right for you. First, and most important, find someone with whom you feel comfortable. If you don’t have a good feeling a potential broker, avoid him. Remember, you’re going to have to trust him with your money. If you don’t feel confident in him or don’t trust him, you’re going to spend too much time worrying about your money. Second, conce you’ve narrowed your search down, do your homework, and research each person. Make sure that they have good records of making money for their clients.

And finally, go with the person whom you feel is right. Just like playing the market, people often follow their hunches. Make the choice and don’t have any second thought about it, at least for a while. If you follow this advice, you shouldn’t have too many problems in finding a good broker.

Harold Weaver
The San Antonio Star
100 Penterson Avenue
San Antonio, TX
 
Passage 2:

Dear Mr. Weaver,

I recently read your piece of advice on how to choose a broker, and I must say that I was very impressed with it. Like your advice stated, choosing a broker can be very difficult. I went though exactly what you described; I kept looking for a good broker but wasn’t quite sure what exactly I was looking for. Actually, I was ready to give up and simply keep all my money invested in CDs until I read your article.

After applying you ideas, I quickly whittled my seach down to three different brokers. I checked them all out and asked around for some information on them. One of them simply stood out above the others. I choose him just a few days ago, and he’s already started handling my money.

I’m not sure how this is going to work out, but I have high hopes for future. However, I’d like to thank you for your advice. It surely assisted me in making a decision, and I’m sure that it has helped many others as well. I’ll be sure to read your future columns and hope that your other advice columns are as good as this one.

Sincerely,
Matthew Hanson