The SEC and your state’s securities regulator should always be your first stops, but you may also want to visit your local library and talk with the librarian about other sources of information. Don’t Invest in Small, Thinly Traded Companies Unless You’re Prepared to Lose Every Pennyīecause small, thinly-traded companies are usually the most risky investments that you can make, you should always get as much written information as you can from the company and other independent sources. Assume that everything you read about those companies in an online bulletin board, newsletter, or chat room is untrue until you prove by your own independent research that it isn’t. Independently Envestigate the Company or Investment Opportunityīe wary of anyone who encourages you to invest in small, thinly-traded stocks that aren’t well known and don’t file reports with the SEC. Look for their disclosure statements in articles about particular companies or in a list or chart on their websites. Legitimate online newsletters that have been paid to tout stocks will clearly and specifically tell investors who paid them, the amount, and the type of payment. Think twice about newsletters that bury their disclosures or put them in tiny, hard-to-read typeface.
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