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

The difference between a broker-dealer and an investment adviser in Tennessee is that the broker-dealer is a type of financial firm that allows customers to buy and sell securities on the market. These securities can include stocks, bonds, mutual funds, and other investments. The broker-dealer is also responsible for clearing and settling securities transactions. On the other hand, an investment adviser provides financial advice to clients regarding investments, such as which stocks or mutual funds to buy or sell. They may also provide advice on how to manage a portfolio and allocate assets. The investment adviser is usually registered with the SEC (Securities and Exchange Commission) and must abide by certain regulations. In Tennessee, investment fraud is subject to the jurisdiction of both the SEC and the state of Tennessee securities department. Both broker-dealers and investment advisers must disclose all relevant information to their clients and cannot make any false, misleading, or deceptive statements. They must also comply with all applicable laws and regulations. By doing so, they are better able to protect their clients from fraudulent activity.

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

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