Full Service Agencies

A full service agency as its name indicates gives the client a considerable assistance that are fulfilled by the following 5 types of services:

1. Research. The agency has within its personnel a team of analysts that watch over the markets trying to find good investments, and to provide information from the results of the research done by the sales personnel. This information is used to recommend clients of probable good investment opportunities.
2. Management of assets. Some stock exchange agencies offer “Treasury Management Accounts” that serve at the same time as a savings account, current account and investment account. Well then, one can park his money in the currency market account of the agency while one gets a modest interest while deciding the definite destination of the money.
3. Investment advisors. The analysts from he research department make general recommendations, but the account executives can advice about concrete financial objectives. The account executive is a professional that has knowledge of a variety of investment products and of their markets; he is in charge of giving the clients the best possible advice considering ones financial situation and of ones objectives.
4. Execution of orders. The stock exchange agencies are prepared to execute orders at the best possible price and at the most appropriate market. Most of the others can be executed in few minutes.
5. Paperwork and liquidation. The execution of an order gives place to extent paperwork, most of it prescribed by the actual legal norms.

With the full service agencies one can form several categories.  The wire houses are largely dimensioned and very diversified agencies whose name is usually known even by non-investors: Merril Lynch, Morgan Stanley Dean Witter, Prudential and Smith Barney.

In spite of how large these agencies are they keep trying to expand their activities towards the retail sales, that is, to open accounts to individual investors. It is the “Great Surfaces” of the investment sector, which offers an ample spectrum of products and the necessary means to maintain the different types of money (current, savings and investment) in an only account.

Another category consists in that integrated by agencies with a different character than the former. They are specialized agencies that only deal with one type of products as Treasury bonds or municipal bonds. Maybe the most known is Lebenthal & Co., which is devoted exclusively to municipal bonds.

There are other agencies of this type, but not as known to the general public. Other types of agencies are those that have their headquarters in New York, and their main clients are mostly wealthy people that have an ample knowledge in financial activities. The main agencies that represent this category are: Morgan Stanley Dean Witter, Donaldson Lufkin & Jenrette and Beal Stearns, who are also known as “Carriage Trade Houses” in allusion to the ancient limousines.

These companies offer especially good research works. They have intelligent and well-prepared representatives that pay special attention to clients. Also, if you where such a client, you would have the opportunity to acquire at the primary market new issues of shares and debentures. These types of firms are not a bit interested in opening small investment accounts. In them, as well as with their clientele it is imperative to have a certain elitist spirit; this makes that for you to open an account in them one will need the backup of one of the clients of the same agency. Another characteristic feature for this type of agency is that they usually do not offer a variety of financial services as ample as in other type of agencies.

Agencies such as Gruntal, Wheat First, Butcher, Singer and Advest present characteristics similar are that of the wire houses and of that of the carriage houses. These agencies give to everybody or to almost everybody the products and services of a wire houses, but adapted to a more personal way, making it a pleasure to do business with them. Although its research personnel are limited in number, they often “discover” local companies that result to be a good investment.

Beginner Money Investing One and the stock exchange agencies Special Account of Order The Discount Agencies Full Service Agencies