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?
1 Answer from Attorneys
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.
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