The Financial Industry Regulatory Authority (FINRA) publishes a best practices guide for investors that describes common investor problems and how they can be avoided. These are the most common complaints FINRA’s Investor Complaint Center receives, and recommendations for avoiding them.<\/p>\n
Misrepresentation<\/strong><\/p>\n Misrepresentation is an untrue statement or omission of material fact that a broker makes purposefully relating to an investment. This may happen with any security, but is more common with low-priced, speculative securities because they are riskier. Investors can avoid this problem by asking brokers to send written information that backs up their representations. Ideally, such representations should be independently verified by your own research.<\/p>\n Cold-Calling or High Pressure Sales Calls<\/strong><\/p>\n This problem occurs when an investor receives frequent, badgering phone calls or calls that involve a high pressure sales pitch such as an investment only being available for a limited time. Remember that with any sales pitch, claims that seem too good to (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Financial Industry Regulatory Authority (FINRA) publishes a best practices guide for investors that describes common investor problems and how they can be avoided. These are the most common complaints FINRA’s Investor Complaint Center receives, and recommendations for avoiding them.…<\/span><\/p>\n