Due to a busy schedule, an investment adviser hires a research company to complete an analysis on a stock. The adviser uses this analysis in a buy recommendation that is published in a quarterly newsletter and sent to clients. In order to best assure compliance with the Uniform Securities Act, the investment adviser should

[A] provide, in the newsletter, the name of the research company that was hired to complete the analysis.[B] be sure to compensate the research company with a reasonable fee for the analysis.[C] be sure to charge all clients receiving the newsletter a subscription fee.[D] buy the security analyzed for the investment adviser's personal portfolio.

The correct answer to: Due to a busy schedule, an investment adviser hires a research company to complete an analysis on a stock. The adviser uses this analysis in a buy recommendation that is published in a quarterly newsletter and sent to clients. In order to best assure compliance with the Uniform Securities Act, the investment adviser should. Is: a) provide in the newsletter, the name of the research company that was hired to complete the analysis.

Explanation:

To understand this answer we have to know what is the Uniform Securities act and what it does. So first, the Uniform Securities Act is a model law that has as purpose to regulate the at a state-level security trading. It also looks to prevent fraudulent acts and establish a code in which all of the security trading processes are included to be developed according to the law. In this case, it applies because the law doesn't really state that investors have to pay for stock analysis. Also, just because someone hires the services of a company to analyze a stock doesn't compromise him or her to buy them. But finally because including the name of the company is a requisite to identify who did the analysis.