The Financial Industry Regulatory Authority ( FINRA) has a Scam Meter on their website which might help keep investors from making a bad decision.
It starts with the age old warning “If it sounds too good to be true, it probably is.”
And then it asks a series of four questions.
1-The scam meter asks if the investment is one of the following:
- Promissory note
- A stock selling for under $5
- A high yield investment, “bank guarantee’ or “Prime Bank” investment
- “Risk Free” or “Guaranteed”
2-Question two asks how you learned about the investment. Was it a free seminar, from unsolicited materials sent in the mail, from a spam email or through a “cold call”.
3-What have you been told about the investment?
Does it offer high returns and low risk? Guaranteed? A limited time only? One of only a few left? Has it been purchased by many other successful investors?
4-Who is selling the investment?
An unregistered person? Someone you recently met? A member of your church or other organization?
Pretty basic stuff, but probably worth the effort if you are looking for another source to help evaluate a potential investment and avoid becoming a victim of financial exploitation.
Anytime you are investing you need to research the person selling the investment and the company he or she works for. Try to get references from people you know and respect before doing business. We see all too many situations where our clients could have avoided a disastrous financial situation had they been a bit more wary.
If you have questions about the way your brokerage account is being handled or investment losses you have suffered, call to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900