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