Series 63 practice questioneasyDefinition of Investment Adviser
Which of the following BEST describes an investment adviser under USA Section 401(c)?
- AAny person who, for compensation, engages in the business of advising others about securities✓ Correct answer
- BAny person who sells securities for a broker-dealer
- CAny person who publishes a general financial newsletter
- DAny person who manages employee benefit plans
Explanation
Why A — Any person who, for compensation, engages in the business of advising others about securities
Option A is correct as the USA defines an investment adviser as someone who, for compensation, advises others about securities. B describes an agent, C is excluded as a bona fide publisher, and D is too vague without further detail.
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