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Finance allah shmoop what is an investment advisor or registered

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investment adviser All right well an investment advisor with no

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other special nomenclature is the guy in your left at

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the craps table screaming in your ear play the past

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line play the past line he's just advising you as

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to where you're going to quote invest unquote your slippery

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five bucks But when an investment advisor actually gets serious

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they have to register generally in the state or states

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in which they're doing business and we mean geographic states

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not like euphoria and depression Structurally they have to know

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how the markets work all kinds of ethical and fiduciary

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obligations that they'll hold for clients they have to understand

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the mathematics of brokers and brokerages and the basics of

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risk Most registered investment advisors have at least a serious

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sixty five exam behind them not a whole lot more

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like the series seven a bunch of others mainly because

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investments never goes smoothly and someone always ends up getting

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sued for bad advice So when firms hire registered investment

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advisors they at least want the protection of being able

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to point to an exam that the broker past that

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Presented basic competence in their understanding of what they were

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at least supposed to have done The key The limiter

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here between the craps table guy in the registered investment

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adviser is compensation Largely The craps table guy offers his

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opinion for free The aria charges money or at least

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wants to and as soon as cash changes hands and

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formal manner while the rules and responsibilities and whole set

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of fiduciary obligations get a whole lot less you know 00:01:46.149 --> [endTime] dicey

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