is defined by the Investment Advisors Act of
1940, any person or group that makes investment recommendations or conducts
securities analysis in return for a fee, whether through direct management of client
assets or via written publications.
An investment advisor who has sufficient assets to be registered with the SEC is
known as a Registered Investment Advisor, or RIA. Investment advisors are prohibited
from disseminating advice known to be deceitful or fraudulent, and from acting as a
principal on their own accounts by buying and selling securities between themselves
and a client without prior written consent.
- Advisor vs. adviser