Where can you safely and profitably invest your money in today s turbulent marketplace? As you ponder that question, you can start with a small but empowering step. Learn where not to invest your money.
Each year the Vermont Department of Banking, Insurance, Securities & Health Care Administration (BISHCA) broadcasts the top ten investor traps to avoid. These have been identified by the Enforcement Trends Project Group of the North American Securities Administrators Association (NASAA), of which BISHCA is a member. The types of offers on the Top Ten list may especially appeal to cash-strapped investors hungry to recover lost financial ground. BISHCA Commissioner Paulette Thabault said, Lesson number one is, verify everything and everyone before you part with your money. Despite promises of high returns, these offers provide little if any disclosure of significant risks. What you can count on is that they pay high commissions to aggressive sales
forces.
How can you investigate a potential investment deal? BISHCA provides investors some important tools for basic screening purposes. First, find out if the seller is registered with the Securities Division to do business in Vermont. It is illegal to offer or sell unregistered securities. Commissioner Thabault said, While buying from a legally registered seller does not guarantee you a risk-free investment, buying from an unregistered seller almost certainly puts your money at risk.
You can also call the Vermont Securities Division at 802-828-3420 to: -Find out whether a person is licensed to sell securities or offer investment advice. -Find out whether a stock or other investment is registered for sale in Vermont. -Report suspected investor fraud or abuse. -Request consumer education materials on safe investment practices. Investors can also conduct their own background research on various financial professionals on the state Securities Division website: www.vermontinvestorprotection.info
And (drum roll), the Top Ten Investor Traps (in alphabetical order)
are:
Vermont announces this year's Top 10 Investor Traps
Submitted by tim
on