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Ten Questions To Ask About
Any Investment Opportunity
With any investment, whether promoted in person, by mail, telephone, or on the Internet, a wise investor should always 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.
- Is the investment registered with the SEC and the state securities
agency in the state where I live or is it subject to an exemption?
- Is the person recommending this investment registered with my state
securities agency? Is there a record of any complaints about this
person?
- How does this investment match my investment objectives?
- Where is the company incorporated? Will you 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?
- What is the risk that I could lose the money I invest?
- What return can I expect on my money? When?
- How long has the company been in business? Are they making money,
and 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?
http://www.sec.gov/investor/pubs/cyberfraud/questions.htm
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