Question

An individual acts as a finder, facilitating mergers and acquisitions of companies that are both publicly and privately held. The individual searches for companies that appear to be compatible and that will either enjoy a revenue enhancement or cost reduction benefit from the transaction. The individual just introduces the parties to the proposed transaction, but has no involvement in the agreements or valuation. Upon the closing of the deal, the individual is paid a percentage of the transaction. Under NASAA rules, this individual:

Answer 1

The correct answer is the following:

According to NASAA positions, this individual necessarily needs to register as a broker in the state because he is receiving a transaction based on compensation

On the other hand, it cannot be considered as an investment advisor because bot advisors warn about transaction-based compensation.