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Are there any restrictions on trading stocks for others?
New York, NY
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Posted 4 months ago in Financial Markets And Services
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Can a market analyst enter into an agreement with another person to trade stocks on behalf of that person? Do they have to be licensed as a broker to do so? Is there any limitation on the commission the analyst would be entitled to under such an agreement - for example, half of the profits earned per month?
Answers (1)
Kaiser Wahab
This attorney is licensed in New York and 1 other state.
Posted 21 days ago.
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Generally speaking the type of service you describe falls under the titles of "broker dealer" and/or "financial advisor." Both of these titles are highly regulated at the state and SEC levels, with licensing and registration requirements. You may want to consult with an attorney as to whether your current "one-off" contract would fall into an exemption thereby sidestepping the above licensing/registraion requirements.
I hope that helps. Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship. |
