Question

What can a broker legally do that a registered investment adviser cannot?


Select the best answer from the choices provided.
earn money from clients by means of commissions and fees
recommend stocks that end up losing over half of their value
recommend trades that profit the broker or adviser at the expense of the client
charge an annual fee for consulting and managing an investment portfolio

Answer 1

@jim_thompson5910

Answer 2

@JoannaBlackwelder

Answer 3

I say C recommend trades that profit the broker or adviser at the expense of the client

Answer 4

no clue, but I'll see what I can find

Answer 5

I think anybody can do c.

Answer 6

Both brokers and investment advisers can recommend buying securities, both have to pass exams, and both have to obey the law and not defraud people. However, brokers do not have a fiduciary responsibility to their clients.

Answer 7

The statement you just posted makes me think you are right about c.

Answer 8

based on this

http://www.psafinancial.com/2012/12/fiduciary-vs-suitability-investment-advisors-vs-brokers/

it says that advisors earn a flat fee while brokers earn fees and commissions (based on the trades made). So it seems like the broker has more interest in making the firm money first, then making the client money second. It's not like he's out to destroy the client or ruin him/her financially. It's just that the broker answers to the firm first.

Answer 9

im looking in to

Answer 10

@jim_thompson5910 .. whatyou think?

Answer 11

@JoannaBlackwelder what you think

Answer 12

it's between A and C I think

Answer 13

I think c

Answer 14

Both brokers and investment advisors earn money by fees, it seems to me.

Answer 15

@jim_thompson5910 A can't be the answer

Answer 16

@JoannaBlackwelder

Answer 17

@jim_thompson5910

Answer 18

If it's not A, then go with C. I'm not 100% sure on this one.

Answer 19

@JoannaBlackwelder It could be B?

Answer 20

I think both could do b.

Answer 21

its asking what can a broker do that a adviser can't

Answer 22

Anybody can recommend a stock, really. :)

Answer 23

C is talking about either one

Answer 24

Right.

Answer 25

After reading about unethical behavior in brokers, some people prefer to invest without a broker's advice. Managing investment accounts without listening to advice has its own dangers. People run the risk of defrauding themselves if they make the following mistakes:
churning their own portfolios by trading too often
chasing returns by buying last year's top performers
failing to understand diversification
underestimating the risk of elements in their portfolio

Answer 26

its D

Answer 27

However, some brokers manage their clients' accounts for a set annual fee.

Answer 28

All of the options are talking about things that both can do. What we have to figure out is which on can a broker legally do that an investment advisor cannot.

Answer 29

And investment advisors can do d, legally.

Answer 30

@JoannaBlackwelder damn im finding the source from the tutorial

Answer 31

No worries.

Answer 32

its not d

Answer 33

its not A

Answer 34

Clients can pay investment advisers and financial planners in several ways. If the advisers are also brokers, they earn commissions and fees on trades. In addition

Answer 35

@JoannaBlackwelder

Answer 36

its b or c

Answer 37

Nobody can completely predict what a stock will do so it is legal for both brokers and investment advisors to recommend stocks that lose money. Any amount of money.

Answer 38

@JoannaBlackwelder which one you think it is

Answer 39

C

Answer 40

ok