Business studies

      Th ere are several factors that should be considered when you are choosin" rel="nofollow">ing which brokerage fi rm(s) to use to execute your trades. Th ere are also a wide range of services that claim to objectively recommend brokerage fi rms. Many are actually sponsored by the brokerage fi rms themselves. Go to the website www.consumersearch.com/onlin" rel="nofollow">ine-brokers/reviews and read the in" rel="nofollow">information provided under “Our Sources.” Th en follow the lin" rel="nofollow">ink for the Barron’s ratin" rel="nofollow">ings. Here you can read the Barron’s annual broker survey and download the “How the Brokers Stack Up” report, which contain" rel="nofollow">ins a list of fees. Suppose that you have $3,000 to in" rel="nofollow">invest and want to put it in" rel="nofollow">in a non-IRA account. 1. Are all of the brokerage firms suitable if you want to open a cash account? Are they all suitable if you want a margin" rel="nofollow">in account? 2. Choose two of the firms listed. Assume that you want to buy 200 shares of LLY stock usin" rel="nofollow">ing a market order. If the order is filled at $42 per share, how much will the commission be for the two firms if you place an onlin" rel="nofollow">ine order? 3. Are there any main" rel="nofollow">intenance fees associated with the account at either brokerage firm? 4. Now assume that you have a margin" rel="nofollow">in account and the balance is $3,000. Calculate the in" rel="nofollow">interest rate you would pay if you borrowed money to buy stock.