A well-informed investor is usually a well-protected investor. Investor education is an effective deterrent against investment scams and can help protect investors from the high cost of securities fraud.
The Illinois Securities Department has made investor education for Illinois investors a top priority. The department offers a number of resources about investing basics, including brochures, publications, video tapes and online computer services. The staff also is available for speaking to civic organizations.
You also may find information on investor education through the North American Securities Administrators Association, Inc., FINRA, U.S. Securities and Exchange Commission and the Illinois Council on Economic Education.
Securities regulators ensure that investors get all the information to which they are entitled. Investors have the right to:
- receive accurate information detailing all material facts about an investment.
- request information about the firm or individuals with whom they are considering doing business.
- know how the rate of return is calculated and any assumptions upon which it is based.
- ask what financial interest the seller of the investment has in the sale.
- know the risks involved prior to making an investment.
- know in advance what obligations and costs are involved with an investment.
- receive responsible advice if solicited from an investment professional. The professional should consider the investor’s financial situation, investment objectives and whether a specific investment opportunity may be suitable for that investor. Every firm and individual that accepts investment funds from the public has the ethical and legal obligation to manage that money responsibly.
- know where their money is, and the current status and value of their account.
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.