Question

Id 298
Number 27
Description Carter works for Invest Today, a local asset management firm. A broker that provides Carter with proprietary research through client brokerage arrangements is offering a new trading ser vice. The broker is offering low-fee, execution-only trades to complement its traditional full-service execution-and-research trades. To entice Carter and other asset managers to send additional business its way, the broker will apply the commissions paid on the new ser vice toward satisfying the brokerage commitment of the prior full-service arrangements. Carter has always been satisfied with the execution provided on the full-service trades , and the fees of the new low-fee trades are comparable to those of other brokers currently used for the accounts that prohibit soft dollar arrangements.