Investment Adviser is defined as which of the following?

• A. An individual or firm that advises clients on investment matters on a professional basis
• B. A person who buys and sells securities for clients
• C. A person who manages a mutual fund
• D. A person who prints investment reports

Answer: (A)

The main idea being tested is who qualifies as an investment adviser: someone who provides professional, compensated advice about investments to clients. The defined statement fits best because it captures the essence of the role—an individual or firm whose business is giving investment guidance to clients. This distinguishes an investment adviser from others who either execute trades for clients (brokers), manage a mutual fund (fund managers), or produce investment reports without offering personalized advice. While fund managers may provide some advisory services to a fund, their primary function is running the fund, not giving individualized investment advice to clients. The focus here is on offering professional guidance about investments for compensation, which is what defines an investment adviser.