What is the first action an advisor should take to obtain accurate securities valuations?

The first action an advisor should take to obtain accurate securities valuations is to obtain 3 to 5 quotes for the securities. This step is critical because it provides a snapshot of the current market value of those securities, ensuring that the advisor has the most up-to-date and competitive pricing information available.

Securing multiple quotes allows the advisor to assess the market consensus on the value of the securities, which can vary between different brokers or platforms. This practice helps in minimizing discrepancies that may arise from relying on a single source of information and helps in achieving a more reliable valuation that reflects the actual market conditions.

While conducting a client's personal financial review, reviewing historical transaction data, and consulting with a legal advisor are all important components of financial advisory work, they do not directly contribute to the immediate task of assessing the current market value of securities. Those steps serve different roles in the broader advisory process, such as understanding a client's goals or ensuring compliance, but obtaining quotes is the most direct and effective approach for accurate pricing of securities.