SOME DO'S AND DON'TS
- Never invest more than you can afford to lose.
- Never send cash or a cashier's check through the mail or give it to a messenger sent by the salesperson. Never give your credit card number over the phone.
- Deal only with firms and individuals you have researched and trust.
- Beware of any investment offered by a stranger over the phone. Never send money for the purchase of an investment as a result of a telephone sales pitch.
- Do your homework. Don't invest in something you don't understand. Make sure the product and the salesperson are properly registered with the Illinois Securities Department.
- A high-pressure sales pitch means trouble. Be suspicious of anyone who encourages you to make an investment decision immediately.
- Beware of promises of spectacular profits. Investments with great profit potential also have a great amount of risk.
- Do not invest on the basis of tips and rumors. Obtain all the facts, know your rights and demand information in writing.
- Beware of testimonials. Scam artists hire people to assert that certain investments brought them great wealth.
- Never write a check to the sales representative.
- Be suspicious of sending checks to addresses that are different from the brokerage firm address, especially P.O. box addresses.
- Insist on transaction confirmations and regular account statements. Review them promptly and verify that the information is correct. If you find an error, insist in writing that it be corrected immediately.
- Don't make any unwarranted assumptions. If it is not in the prospectus, you cannot assume it to be accurate.
- Save all records of transactions and correspondence with the broker/advisor and the firm. Never part with original documents.
- Take notes of your conversations with your broker/advisor(and include the date).
- Contact the Illinois Securities Department with any suspicions (800) 628-7937.
- If in doubt - do not invest.
