- Before making a securities
investment in stocks, bonds or mutual funds, you should get enough information
to make an informed decision.
- Never invest in a product
that you don't fully understand. Ask questions.
- Investments ALWAYS entail
some degree of risk. Do you understand the risk involved in this investment?
Are you comfortable with the risk involved?
- Avoid high-pressure sales
- Select a broker who understands
your financial objectives. Interview two or three to compare experience,
education and professional background.
- Understand how the sales
representative is paid. What fees will you pay to purchase, sell or
maintain the account?
If you buy a mutual fund, what
are the expenses to buy, sell or manage the fund?
- To find out about the disciplinary
history of the sales representative, call the National Association of
Securities Dealers, Inc., 1 (800) 289-9999
- If you have a problem with
your sales representative or your account, talk with the firm's manager.
If you can't resolve the problems with the firm, contact the U.S. Securities
and Exchange Commission at 1 (800) SEC-0330, or the Illinois Secretary
of State's Securities Department at 1 (800) 628-7937.
- For free publications "Invest
Wisely: Advice from Your Securities Industry Regulators" and "Invest
Wisely: an Introduction to Mutual Funds," call 1 (800) SEC-0330.
* Courtesy of The U.S. Office
of Consumer Affairs