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Important Investor Tips

Investigate Before Investing

Depending on your choice of investment vehicle, it is wise to verify the license with appropriate governmental agencies:

  • The California Department of Corporations (Corporations) regulates nearly 250,000 individual and firms, including broker-dealers, agents or registered representatives, investment advisers and financial planners, investment adviser representatives or associated persons, independent escrow agents, consumer and commercial finance lenders, and residential mortgage lenders or mortgage bankers. You can contact Corporations at 1-866-ASK-CORP (1-866-275-2677).

Equities

If the investment is equities, check with the Securities and Exchange Commission (SEC) . Their toll free number is 1-800-SEC-0330 (732-0330)

commodities

If your investment involves commodities, call the Commodity Futures Trading Commission's (CFTC) Western Region Office in Los Angeles at (310) 443-4700.

national franchise

If you are planning to invest in a national franchise, you should contact the Federal Trade Commission (FTC). Their toll free number is 1-877-FTC-HELP (382-4357)

non-public company

If you are planning to invest in a non-public company, contact various consumer organizations to determine if the companies or promoters have any negative history. Those organizations include:

Do not purchase any investment that is offered over the telephone, the Internet, through newspaper advertisements, on the radio or television unless you check with the appropriate regulatory agency to determine if the company is licensed.

When in doubt about a potential investment, wait. Remember, even with legitimate investments there is always the risk of losing money. If you do not understand the investment, stay away from it. Trust your instincts. A lack of understanding on your part may be caused by the fact that the investment really doesn't make any sense.

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