1940 Investment Advisors Act
Categories: IPO, Trading, Mutual Funds
Wondering why you're reading these definitions instead of working on your short game? This is why.
After people claiming to be "investment advisors" scammed a lot of innocent folks in the 1930s (and before), this act created a bunch of rules you have to follow to become a registered investment advisor. After this rule was created, you couldn't just open up shop and claim to be an investment advisor—you needed to pass a test and get a piece of paper to prove it.