Here is the SECs INVESTigate Before You INVEST! List
1. Don't believe everything you read on-line. Take the time to investigate a possible investment opportunity before you hand over your hard-earned money. The following steps will show you how:
2. Check with your state securities regulator or the SEC and ask if they have received any complaints about the company, its managers, or the promoter. See the end of this fact sheet on how to contact these agencies.
3. Don't assume that people on-line are who they claim they are. The investment that sounds so good may be a figment of their imagination.
4. Check with a trusted financial advisor, your broker, or attorney about any investment you learn about on-line.
5. Ask the on-line promoter where the firm is incorporated. Call that state's secretary of state and ask if the company is incorporated with them and has a current annual report on file.
6. Ask for other sources of information at your local public library. For example, there are resources that provide information about the company, such as a payment analysis, credit report, lawsuits, liens, or judgments.
8. Don't assume that your access provider or on-line service has approved or even screened the investment. Anyone can set up a web site or advertise on-line, often without any check of its legitimacy or truthfulness.
9. Before you invest, always obtain written financial information, such as a prospectus, annual report, offering circular, and financial statements. Compare the written information to what you've read on-line and watch out if you're told that no information is available.
10. Have You Run Into A Problem? Don't be embarrassed if you think you've been duped -- you are not alone. Complain promptly. By complaining early you will have a better chance of getting your money back, protecting your legal rights, preventing others from losing money, and assisting securities regulators in stopping investment fraud. |
