Legal Question in Securities Law in California

I see a bunch of websites that offer investment advice, especially stocks, penny stocks, and forex. Are these websites legal? My friend operates one that has a paid subscription (i tried it out 1 time and lost $100 trading) Is he liable for people's losses?

Asked on 12/02/12, 5:53 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law
0 users found helpful
0 attorneys agreed

Offering investment advice is a licensed business; generally, investment advisors need to take a test and get a license from the Securities and Exchange Commission (SEC). It's probably legal for your barber to tell you to buy AT&T, but it's not legal for someone without a license to run a Web site touting XYZ Gold Mines to the general public. The legality depends upon whether the site operator holds an appropriate license and the specifics of what the site is doing.

Read more
Answered on 12/02/12, 7:22 pm

Related Questions & Answers

More Securities Law questions and answers in California

Looking for something else?

Get Free Legal Advice

89033 active attorneys ready to answer your legal questions today.

Securities Law Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony SmithLawSmithLee's Summit, MO
Glen AshmanAshman Law OfficeAtlanta, GA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now