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Are there any restrictions on trading stocks for others?

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?

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Attorney answers (1)

Reputation Level 14
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.

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