Ask Question
BusinessBusiness
17 April, 14:43

Charles Schwab in 1971 was determined to build a stock brokerage firm that would be different. He cited that he was disturbed by the conflict of interest between the stockbrokers and their clients. Brokers were commonly known for convincing clients to make questionable transactions to increase their commissions. What did Charles Schwab see as a current issue in the stock brokering industry?

+2
Answers (1)
  1. 17 April, 14:55
    0
    D) The Agency Problem

    Explanation:

    The agency problem refers to a conflict of interests between the principal and his/her agent. Agents have a fiduciary duty to act on the best interest of their principal, but sometimes agents place their own personal interest before the interests of their principal.

    in this case, the brokers should act on behalf of their clients to make them earn the largest possible profits, but instead they focus on convincing them about transactions that increased the broker's profit and not the clients'.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Charles Schwab in 1971 was determined to build a stock brokerage firm that would be different. He cited that he was disturbed by the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 percent, what is the operating cash flow, or OCF
Answers (1)
How many ways can an irs auditor select 6 of 13 tax returns for an audit?
Answers (1)
Absolute advantage is ... A. The ability of a Country to produce a good using fewer productive inputs than is possible anywhere else in the world B.
Answers (1)
The disposal of a business segment is reported as discontinued operations. True or false?
Answers (1)
If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $54, then what is the stock's expected dividend yield for the coming year?
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)
Home » Business » Charles Schwab in 1971 was determined to build a stock brokerage firm that would be different. He cited that he was disturbed by the conflict of interest between the stockbrokers and their clients.
Sign Up Forgot Password?