Suitable (Suitability)

Suitable (Suitability)
A situation (and sometimes a legal requirement) that an investment strategy meets the objectives and means of an investor. In most parts of the world financial professionals have a duty to take steps that ensure that an investment is suitable for a client. For example, in the United States these rules are enforced by the NASD.

In other words: is an investment appropriate for an investor? No investment (other than outright scams) are inherently suitable or unsuitable, it depends on the investor's situation. For example, for a 95 year old widow living on a fixed income, speculative investments such as options and futures, penny stocks, etc. are extremely unsuitable because the widow has a low risk tolerance. On the other hand, an executive with significant net worth and investing experience might be comfortable taking on those speculative investments as part of his/her portfolio.


Investment dictionary. . 2012.

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  • suitability — 1680s, from SUITABLE (Cf. suitable) + ITY (Cf. ity) …   Etymology dictionary

  • Suitability — Suit a*bil i*ty, n. The quality or state of being suitable; suitableness. [1913 Webster] …   The Collaborative International Dictionary of English

  • suitability — suitable ► ADJECTIVE ▪ right or appropriate for a particular person, purpose, or situation. DERIVATIVES suitability noun suitably adverb …   English terms dictionary

  • suitable — ► ADJECTIVE ▪ right or appropriate for a particular person, purpose, or situation. DERIVATIVES suitability noun suitably adverb …   English terms dictionary

  • suitable — [so͞ot′ə bəl] adj. that suits a given purpose, occasion, condition, propriety, etc.; fitting; appropriate; apt SYN. FIT1 suitability n. suitableness suitably adv …   English World dictionary

  • suitable — suitability, suitableness, n. suitably, adv. /sooh teuh beuhl/, adj. such as to suit; appropriate; fitting; becoming. [1505 15; SUIT + ABLE] Syn. proper, befitting, seemly, apt. * * * …   Universalium

  • suitable — [[t]su͟ːtəb(ə)l[/t]] ♦♦♦ ADJ GRADED: oft ADJ for n/ ing Someone or something that is suitable for a particular purpose or occasion is right or acceptable for it. Employers usually decide within five minutes whether someone is suitable for the job …   English dictionary

  • suitable — adjective Date: 1581 1. obsolete similar, matching 2. a. adapted to a use or purpose < suitable for kitchen use > b. satisfying propriety ; proper < suitable dress > c. able …   New Collegiate Dictionary

  • suitability — suit|a|bil|i|ty [ ,sutə bıləti ] noun uncount the degree to which someone or something is suitable for a particular job or purpose: There were some doubts about his suitability for the job …   Usage of the words and phrases in modern English

  • suitability — UK [ˌsuːtəˈbɪlətɪ] / US [ˌsutəˈbɪlətɪ] noun [uncountable] the degree to which someone or something is suitable for a particular job or purpose There were some doubts about his suitability for the job …   English dictionary

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