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.

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.

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.Are blanket recommendations sent to investors in a timely enough manner to be effective?

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, GA