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

A broker-dealer and an investment adviser are both important players in the world of investment fraud law in West Virginia. A broker-dealer is a person or company that is licensed to buy and sell securities, like stocks, bonds, and mutual funds. Broker-dealers have an obligation to their customers to provide products and services in a fair and honest manner. They must also adhere to rules and regulations set by the Securities and Exchange Commission (SEC). An investment adviser is an individual or company that is registered with the SEC and provides advice or services related to investments, such as assessing the performance of securities, recommending investments, or offering consulting services. Investment advisers must also comply with the standards established by the SEC. The main difference between a broker-dealer and an investment adviser is that the broker-dealer is responsible for executing orders to buy and sell securities, while the investment adviser is responsible for providing their clients with advice and assistance in making investment decisions. Broker-dealers are primarily concerned with the execution of orders, while investment advisers are primarily focused on providing advice. Although they may sometimes overlap in their services, it is important to remember that a broker-dealer is not the same as an investment adviser.

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

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