American Financial Services Investment Glossary Click on a letter below to browse the Investment Glossary. The number is used by fundamental analysts when examining a company's financial statement. The use of money through various vehicles, or an individual's time and effort, to make more income or increase capital, or both. On the other hand, speculation connotes that risking principal is acceptable. In most cases, investment advisors with more than 15 clients must register with the SEC and abide by the Investment Advisors Act of 1940.
Most states require an investment advisor to pass an examination.
The intent of the Act is to protect investors from fraud or misrepresentation by investment advisors. A firm, acting as an underwriter or an agent, who serves as intermediary between an issuer of new securities and the investing public. If a client relationship exists, the investment banker's role starts with pre-underwriting counseling and continues after the distribution of securities is completed by offering ongoing advice and guidance. Besides new securities offerings, investment bankers manage the distribution of secondary offerings, maintain markets for already distributed securities and act as finders for private placements. Most investment bankers also maintain broker-dealer operations that serve wholesale and retail clients in brokerage and advisory capacities.