1. Should Hasit be concerned about the lack of insurance on his brokerage account? Are there any specific securities acts you could cite to back up your answer?
2. Chandni is concerned about insider trading. Do you agree with Chandni's concerns? Why or why not?
3. Provide Hasit and Chandni a list of questions to ask potential brokers to assure the Kumars will receive the best service at the lowest costs.
4. Hasit and Chandni are considering bypassing the broker and going directly online to trade. What cautions would you share with them? What is the difference between online investing and day trading?
5. If an account titling option is available, would you recommend that Hasit and Chandni own their account as tenants-in-common or as joint tenants with right of survivorship? Why? What is the primary difference in the two account titling options?

Hasit and Chandni Kumar are in their early 40s, and until now, they have always kept their savings in the bank. They liked the idea that a deposit in the bank was insured and guaranteed and that, regardless of what happened in the economy or to the bank, they could always get their money. Hasit and Chandni recently talked with a stockbroker about funding their retirement. The stockbroker pointed out that in terms of reaching their retirement goals, a bank account does not pay enough interest. The broker recommended that they invest in a combination of stocks, bonds, mutual funds, and money market accounts. Both are skeptical about the ultimate safety of their investments. Specifically, Hasit is worried about what would happen to their securities and cash if the brokerage firm went bankrupt, and Chandni is concerned that the markets are rigged and that only those with inside information ever make any money. Both are equally concerned that the markets are unregulated gambles and that there is no way to regulate the ethics of brokers.