Easy Broker Background Check
Q: A friend recommended a broker to
me. Is there an easy way for me to check out her background before I contact
Mary, very easy. Go to nasdbrokercheck.com. Click
“start search” and type in
the name of the broker you want to search. Bingo. You’ll see a summary of
qualifications, employment history, and conduct – all in a matter of seconds.
You can also ask your state
securities regulator – in your case, Mary, the New Jersey Bureau of Securities
– to provide you with this information. Both pull information from the same
database – the CRD or Central Registration Depositary. The only difference? Investor
Ed knows that state securities regulators may provide more information from the
CRD than NASD, especially when it comes to investor complaints.
Q: What is the rule of 72?
Rule of 72 — really just a “rule of thumb” — is a great way to estimate how an
investment will grow over time. If you know an investment’s expected rate of
return, the Rule of 72 can tell you approximately how long it will take for the
investment to double in value. Simply divide the number 72 by the investment’s
expected rate of return (ignoring the percent sign). Assuming an expected rate
of return of 9 percent, an investment will double in value about every 8 years
(72 divided by 9 equals 8). I’m Investor Ed and that’s all I know.