Preferred Stock

[Bassin08]

I think I did something stupid today. I had a CD in my IRA mature, so I had to reinvest the money. My advisor told me the best CD rates he can get is .1%, so he suggested a preferred stock, AGM.E @$27.50 a share with par being $25.00 a share. After I got off the phone I thought I should try to look it up. I was shocked when I seen the price at $26.30 a share. Is it fair for him to earn $960 for a 15 minute phone call?

How do I go about getting an advisor who is honest that I can trust. I just want to be in safe investments and make 3-4% return without worry. Is this possible?

[NitroZ7]

I think I did something stupid today. I had a CD in my IRA mature, so I had to reinvest the money. My advisor told me the best CD rates he can get is .1%, so he suggested a preferred stock, AGM.E @$27.50 a share with par being $25.00 a share. After I got off the phone I thought I should try to look it up. I was shocked when I seen the price at $26.30 a share. Is it fair for him to earn $960 for a 15 minute phone call?

How do I go about getting an advisor who is honest that I can trust. I just want to be in safe investments and make 3-4% return without worry. Is this possible?

I have AGM C that is around 27.14 today. Did he maybe say C instead of E? I know entering preferred quotes is a mess. I have been on the phone with someone where they are trying to find the same preferred I’m looking at and they sometimes are looking at something different. If you get the trade confirmation check and see the time of execution and symbol and see what it was trading at then.

[Bassin08]

I have AGM C that is around 27.14 today. Did he maybe say C instead of E? I know entering preferred quotes is a mess. I have been on the phone with someone where they are trying to find the same preferred I’m looking at and they sometimes are looking at something different. If you get the trade confirmation check and see the time of execution and symbol and see what it was trading at then.

It looks like it was $26.65, so I paid him $.85 a share or $680. I think that is too much?

[NitroZ7]

It looks like it was $26.65, so I paid him $.85 a share or $680. I think that is too much?

That just seems strange. They normally charge you a commission but not selling you stuff with a spread unless they owned it in their own account.

[Bassin08]

He bought 3 times throughout the day to fill an 800 share offer. He said he does that to get them as they become available. His fee is .45% per share. Is this normal?

[NitroZ7]

He bought 3 times throughout the day to fill an 800 share offer. He said he does that to get them as they become available. His fee is .45% per share. Is this normal?

I bought some Gilead today through a managed account and they bought in 4 separate lots. The preferred may not have that much liquidity so they may not have been able to buy it in one lump sum. I don’t pay commissions so I can’t really opine on what they charged but it is not unusual to have to buy in separate purchases if there is not a lot of volume for a preferred.

[Bassmaster96]

I bought some Gilead today through a managed account and they bought in 4 separate lots. The preferred may not have that much liquidity so they may not have been able to buy it in one lump sum. I don’t pay commissions so I can’t really opine on what they charged but it is not unusual to have to buy in separate purchases if there is not a lot of volume for a preferred.

Yeah, that sounds accurate