Investigate Before You Invest
Presented by the Arkansas Securities
Department
Registration of Investment
Professionals
Registration of Securities
Investigation of Complaints and
Enforcement of Laws
Educate and Inform Investing Public
Call our Department at
1-800-981-4429If it seems too good to be true,
IT PROBABLY IS!
Types of Securities• STOCKS - Ownership
interest in corporation• BONDS - Investment in
which you lend money to a corp.,govt., or municipality
• MUTUAL FUNDS-Company that invests in securities
• OTHER-Viaticals, Promissory
Notes,Callable CD’s, Ltd. Partnerships
Risk and Return
US Government Securities
Options
Stocks
Investment Grade Bonds
TIPS TO SAFER INVESTING
• Map out your financial goals before you meet with an investment professional
• Know your investment professional• Understand your investment• Make sure that you understand your
account statements• Ask questions
BE PROACTIVE• STOP COURTESY ON
PHONE• CHECK OUT STRANGERS
WITH STRANGE DEALS• STAY IN CHARGE OF
YOUR MONEY• WATCH OUT FOR
SALESMEN WHO PREY ON YOUR FEARS
• MONITOR YOUR INVESTMENTS
• LOOK FOR TROUBLE CASHING OUT PROFIT OR PRINCIPAL
• DON’T LET FEAR OR EMBARASSMENT KEEP YOU FROM REPORTING FRAUD OR ABUSE
HOW MUCH RISK CAN YOU HANDLE?
WHAT ARE YOUR INVESTMENT GOALS?
• Safety of Principal
• Speculation
• Income
• Growth
= Lower Risk
DividendsPrice
Appreciation
KNOW WHAT YOU WANT
Unsuitable
RecommendationsExcessive Trading/Churning the Account
Misrepresentation of Material Facts
Unauthorized Trades
Give Your Rep All Pertinent Financial Information
Give Your Rep a Written List of Financial Objectives
Read and Understand Everything You Sign
The more transactions you perform, the higher your broker’s commission.
Understand the Investment Ask Questions Request a Prospectus
in w
riting
Monitor your account
Take action as soon as possible
It is okay to say NO- hang up