Final answer:
It is true that an Investment Advice Brochure is required to be given to both clients and prospective clients. This ensures transparency in a firm's operations. Additionally, stocks can be purchased via online brokers or apps, and diversifying your portfolio is recommended to mitigate risks.
Step-by-step explanation:
True, an Investment Advice Brochure that contains information about a firm's background and business practices must be delivered to clients and prospective clients. This is part of a regulatory requirement designed to ensure transparency and to inform clients about the firm's services, fees, and strategies, as well as any conflicts of interest that may exist.
When considering where to purchase stocks, an individual can do so through various platforms including online brokerages, traditional brokerage firms, or more increasingly, through mobile investment apps. Each platform has its own set of features, fees, and benefits, and it is essential for an investor to do the necessary research to find the best fit for their investment needs.
Moreover, it is important to consider diversifying your portfolio as a means of reducing risk. Diversification involves spreading your investments across different asset classes, industries, and geographic locations to mitigate the impact of market volatility on the overall performance of your portfolio. By not putting all your eggs in one basket, you're less likely to see significant losses if one particular investment performs poorly.