Raymond James Case Study

Brian Wirz

What is a broker/dealer? Types

A broker/dealer is an intermediary in which investors purchase financial assets such as stocks, bonds, and mutual funds, as well as services such as financial planning, retirement, etc. Different types included “wirehouses,” which were the biggest firms that did business on a national, and often global, basis. There were also independent brokers who weren’t members of the NYSE. Lastly there were “regional” broker/dealers who had the same product scope as wirehouses but were based solely outside of New York.

What “channels’ does Raymond James use to serve individual investors?

Raymond James currently has two channels. One was a network of employee financial advisors. The additional channel was a network of independent financial advisors who had access to Raymond James’ product and services, research, back office operations, and brand name through an independent contractor relationship.

What is “front” money?

“Front money was in retrospect a signing bonus offered to prospective hires. The front money consisted of a certain percentage of that hire’s previous year’s payout. This was used in order to draw that particular person away from a competitor. It was rare for a person to get “front money” when going independent.

What