Blanket Recommendation
A situation in which a financial professional or institution sends a recommendation to all clients to buy or sell a particular security or product, regardless of whether or not the particular asset is compatible with the client's investment goals, objectives and risk tolerance. Investopedia Says:
Communicating to clients through a blanket recommendation is usually ill-advised because the clients solicited will have varying investment profiles. Imagine if a particular client who is retired and can't afford to lose a lot of money is the recipient of a blanket recommendation and the recommended transaction is of higher risk than what she is used to. Should the client follow the firm's advice, she stands to lose a portion of the savings it has taken her years to accumulate, which would be very difficult to replenish. Related Terms:
Full-Service Broker
Investment Advisor
Risk Averse
Risk Lover
Risk Neutral
Risk Tolerance |