Unsuitable (Unsuitability)

Unsuitable (Unsuitability)
A situation where an investment strategy does not meet 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.

No investment (other than outright scams) are inherently suitable or unsuitable; suitability depends on the investor's situation. For example, for a 95-year-old widow living on 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 or her portfolio.


Investment dictionary. . 2012.

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  • unsuitability — unsuitable ► ADJECTIVE ▪ not fitting or appropriate. DERIVATIVES unsuitability noun unsuitably adverb …   English terms dictionary

  • unsuitable — ► ADJECTIVE ▪ not fitting or appropriate. DERIVATIVES unsuitability noun unsuitably adverb …   English terms dictionary

  • unsuitable — [un so͞ot′ə bəl] adj. not suitable; unbecoming; inappropriate unsuitability n. unsuitably adv …   English World dictionary

  • unsuitable — unsuitability, unsuitableness, n. unsuitably, adv. /un sooh teuh beuhl/, adj. not suitable; inappropriate; unfitting; unbecoming. [1580 90; UN 1 + SUITABLE] * * * …   Universalium

  • unsuitability — noun the quality of having the wrong properties for a specific purpose • Syn: ↑unsuitableness, ↑ineptness • Ant: ↑suitableness (for: ↑unsuitableness), ↑suitability …   Useful english dictionary

  • unsuitability — See unsuitable. * * * …   Universalium

  • unsuitability — noun The quality of being unsuitable …   Wiktionary

  • unsuitability — n. inappropriateness, state of being unsuitable …   English contemporary dictionary

  • unsuitable — adjective not fitting or appropriate. Derivatives unsuitability noun unsuitableness noun unsuitably adverb …   English new terms dictionary

  • unsuitable — /ʌnˈsutəbəl/ (say un soohtuhbuhl) adjective not suitable; inappropriate; unfitting; unbecoming. –unsuitability /ʌnˌsutəˈbɪləti/ (say un.soohtuh biluhtee), unsuitableness, noun –unsuitably, adverb …  

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