blanket recommendation
Blanket recommendation
A recommendation by a brokerage firm sent to all its customers advising that they buy or sell a particular stock regardless of investment objectives or portfolio size.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Blanket Recommendation
A recommendation to buy or sell a security that a broker or investment advisor makes to all her clients. Many analysts advise against following a blanket recommendation because doing so may not advance one's individual investment goals. In fact, following a blanket recommendation may seriously harm a client, depending on the client's risk tolerance, level of diversification and other matters.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
blanket recommendation
A recommendation to buy or sell a security that is sent by a brokerage firm to all its customers. Firms do not consider individual investors' objectives before sending out a blanket recommendation.
Blanket recommendations for a specific security usually have been significantly diluted by the time the client receives a mailing from the brokerage firm. In most cases, the recommended security should be looked at as a long-term play rather than as a trading vehicle.
George Riles, First Vice President and Resident Manager, Merrill Lynch, Albany, GAWall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.