Which of These Statements Most Accurately Describes Both an Unregistered

question 1

Multiple Choice

Which of these statements most accurately describes both an unregistered financial advisor and a registered investment advisor?

• A)Both are interested and willing to work with relatively low net worth investors; only the registered advisor is overseen by the SEC.
• B)Both charge fees to manage funds; only a registered investment advisor is legally obligated to put his investors' interests ahead of his own.
• C)Registered investment advisors tend to charge lower fees; unregistered financial advisors charge higher fees but take on more clients.
• D)Registered investment advisors and unregistered financial advisors most often charge an annual fee.

---

Definitions:

Utilitarianism

An ethical theory that proposes actions are right if they are useful or for the benefit of a majority.

Risk-Benefit Analysis

The assessment of potential risks and benefits associated with a medical treatment or intervention to make informed decisions.

Cost

The amount of money required to purchase, maintain, or operate something.

Inoperable Brain Tumor

A brain tumor that cannot be surgically removed, often because of its location or the patient's health status.