Before you start investing it’s always better to check out the various warning signs or so-called Red Flags so that you can avoid any kind of broker fraud and stay safe.
1. See whether the products are registered or not: When you look at the investment scams most of them would actually include the unlicensed people who were selling securities which were unregistered. It might include various stocks, gas or oil deals, bonds, notes, fictitious investments like the investments in prime banks. Always look for the companies who are registered and who have the license to run an investment company. This will help you to prevent the risk of investment loss to a certain extent and you might not get into trouble of trusting an unlicensed individual.
2. If it is promising excessive returns: Make sure to suspect those who guarantee that the investment would work in a certain way. There is a certain level of broker fraud risk in all the investments. Whenever there is consistent high return month by month or which promises unusual steady returns irrespective of the market situations, you should be suspicious. In rough conditions, even highly stable investments would experience a certain level of ups and downs.
3. If the strategies are complex: Make sure to avoid those who would credit complex and hard to believe investment techniques for an uncommon success. A genuine and authorized professional should be able to let you know what and how they are doing clearly and shouldn’t hide anything from you. It is important for you to understand the investment which you are planning to do. It should also include various aspects like what it is all about, the various risk factors that you need to consider and the way through which the investment would make money for you.
4. See that no documents are missing: Whenever you are planning to invest in any kind of stock as well as the mutual funds make sure to choose the ones which have the necessary documentation. Always be cautious that some people might try to sell you the unregistered securities which wouldn’t be a great idea while planning to invest. Even when you are looking forward to investing in stocks see to it that they have the stock symbols. This way you can manage to figure out the genuine and fake investment options that are now available in the market.
5. If the salesperson pushes for fast selling: Make it a point not to rely on those salespersons who would try to push you to buy the stocks or make an investment or to take an immediate decision about the investment. They shouldn’t ask you to act immediately. Never entertain those who try to pressurize you to finalize on buying or selling any of your stocks or funds. Whether there is any kind of fraud taking place or not, it is inappropriate for them to force you to take such decisions. If you lose money in any of your investments through broker fraud, you can hire a reputed attorney Haselkorn and Thibaut by calling at the office number.
Haselkorn and Thibaut, InvestmentFraudLawyers.com, specialize in fighting for investors. We have over 100 years of experience and 95% success rate. Call us now for a free consultation at 1-800-856-3352. No Recovery, no fee.