What is the difference between a broker-dealer and an investment adviser?

A broker-dealer and an investment adviser are two different financial professionals who work with investments. Broker-dealers are companies or individuals that buy and sell securities, such as stocks and bonds. They earn money through commissions that are generated when they execute trades on behalf of their clients. Broker-dealers are regulated by the Financial Industry Regulatory Authority (FINRA) and must adhere to strict rules regarding the sale of investments. Investment advisers, on the other hand, are registered with the Securities and Exchange Commission (SEC) and provide advice to their clients about investments. Investment advisers can be individuals, such as a financial planner, or a company like an investment firm. They are typically limited to offering advice and cannot actually buy or sell securities on behalf of their clients. In the state of Virginia, both broker-dealers and investment advisers are required to register with the SEC and adhere to the laws and regulations in place to protect investors from investment fraud. A licensed attorney is typically the best source for sound legal advice regarding investments and investment fraud in Virginia.

Related FAQs

How can I protect myself from investment fraud?
What are the risks of investing in a company with a history of fraud?
What is the difference between a broker-dealer and a registered investment adviser?
What is the difference between a qualified and a non-qualified investor?
How can I recognize and avoid Ponzi schemes?
What is a securities fraud complaint?
What is the difference between an index fund and a mutual fund?
What are the state laws governing investment fraud?
What is the role of the Securities and Exchange Commission (SEC) in investor protection?
What is the difference between a private and a public offering?

What is the difference between a broker-dealer and an investment adviser?

Related FAQs

Related Blog Posts