Legal Question in Securities Law in California

Financial Services/Stock Trading Education, Advice

Hello,

I am thinking about starting an educational/financial services website, in which we teach people how to read stock charts, interpret various indicators, etc thru a real time chat room and one on one and group tutoring via phone, skype, etc. Along with this we are also offering customers a look at good examples of stocks that meet our criteria for that time period via an email service detailing a little about the company and why we like it. While we are in no way managing anyone's money, I want to know if this may be interpreted as investment advice, which may require liscences we don't have, etc. Any advice as to how this business would be classified, and if we would require any liscnces, what rules and guidelines we would have to follow or paramaters we would have to operate within would be greatly appreciated. Thank you in advance.


Asked on 6/19/07, 10:16 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Financial Services/Stock Trading Education, Advice

Sounds like you would need a financial advisor's license.

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Answered on 6/20/07, 12:50 am
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Financial Services/Stock Trading Education, Advice

Congratulations on starting your endeavor. Your question would require a detailed examination of your business plan in order to properly advise you. You are entering a highly regulated area, one in which the penalties for non-compliance can be significant. I would suggest you take the time and money to receive proper legal guidance before moving forward.

I would be willing to discuss your business to see how I may be of assistance.

I look forward to speaking with you.

Yours truly,

Bryan

Bryan C. Becker, Esq.

Principal

Law Office of Bryan C. Becker

The Koll Center

501 W. Broadway, Suite 800

San Diego, CA 92101

Toll Free: 877*201*8728

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Answered on 6/20/07, 11:44 am


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