Protect Yourself

Ten Questions To Ask About Any Investment Opportunity

With any investment, whether promoted in person, by mail, telephone, or on the Internet, a wise investor should always slow down, ask questions, and get written information. Take notes so you have a record of what you were told, in case you have a dispute later.

  1. Is the investment registered with the SEC and the state securities agency in the state where I live or is it subject to an exemption?
  2. Is the person recommending this investment registered with my state securities agency? Is there a record of any complaints about this person?
  3. How does this investment match my investment objectives?
  4. Where is the company incorporated? Will you send me the latest reports that have been filed on this company?
  5. What are the costs to buy, hold, and sell this investment? How easily can I sell?
  6. Who is managing the investment? What experience do they have?
  7. What is the risk that I could lose the money I invest?
  8. What return can I expect on my money? When?
  9. How long has the company been in business? Are they making money, and if so, how? What is their product or service? What other companies are in this business?
  10. How can I get more information about this investment, such as audited financial statements?


We have provided this information as a service to investors. It is neither a legal interpretation nor a statment of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.



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