Retail investors lucky enough to have never had trouble with stockbrokers, or the broker-dealer firms who employ them, may not be aware that the standard of conduct for these investment professionals is below that of a fiduciary.
A fiduciary is obligated to act in the best interest of the person or entity to which the fiduciary duty is owed. This includes full disclosure of possible conflicts of interest.
Thanks to the Advisers Act of 1940, investment advisors have long had to adhere to the fiduciary duties of loyalty and care, but stockbrokers and broker-dealers ha...
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