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Hi Steve, that happened many years ago. The brokerage was a known one that merged with another afterwards. I invested 15K but when I closed the account after 2 years, the money I got back was less than 15K; all the gains went to the broker in the form of commissions. That was the last time I used a commissioned broker...I was already investing on my own using Schwab and Fidelity when he called me to open an account with him. I was doing well on my own but agreed just for the heck of it...To be fair, he did recommended a winner in COMS. I bought 1000 shares at 10/share but then urged me, a few days later, to sell when the stock hit 17/share. A week or two later, the stock went up to 30, then 50, then 100, then split then 100, then split then hit 75 in a period of 4 years. My 10K would have grown to 250K last year. In the meantime, the stock where he switched me to, NOVELL, dropped from 28 to 17 just before I closed the account. If I stayed with the broker maybe I was able to see NOVELL broke down to 9/share---At least my whole money was not spent paying for his commissions... |
