Top 10 Questions to Avoid Fraud
With any investment, whether recommended in person, by
mail, telephone, or online, you should slow down, ask
questions, and get written information. Take notes so
you have a record of what you were told in case you have
a dispute later. Here are the top questions to ask:
- Is the investment registered with the US Securities
and Exchange Commission and the state where I live?
- Is the person recommending this investment licensed
with my state securities agency? Is there a record of
any complaints about this person or the firm he or she
- How does this investment match my investment objectives?
- Will the sales representative send me the latest reports
that have been filed on this company?
- What are the costs to buy, hold, and sell this investment?
How easily can I sell?
- Who is managing the investment? What experience do
they have? Have they made money for investors before?
- What is the risk of losing the money that I invest?
- What return can I expect on my money, and when?
- How long has the company been in business? Is it making
money? If so, how? What is their product or service?
What other companies are in this business?
- How can I get more information about this investment,
such as audited financial statements, annual and quarterly
reports, a prospectus?
From the US Securities and Exchange Commission