Understand Before You Invest
Virtually every investment carries some degree of risk, whether it's the possibility of losing your principal or the chance that your returns will fail to keep pace with inflation.
An additional type of risk you don't often hear about is the potential for an otherwise legitimate investment to be involved in a fraudulent scheme or an overly aggressive sales pitch. Here are some of the various investment products that have been at the center of enforcement actions by FINRA, the SEC, and state regulators.
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Types of Investment Products
Annuities—insurance contracts that can provide monthly income for life but which can be extremely complicated. Learn more.
Life Settlements—a source of liquidity for people who would otherwise surrender their policies or allow them to lapse. Learn more.
Microcap Stocks—the stocks of small companies that do not register with the SEC. Learn more.
REITs—entities that invest in different kinds of real estate or real estate related assets. Learn more.
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Reverse Mortgages—allow older homeowners to convert part of the equity in their homes into cash. Learn more.
Oil and Gas Investments—limited partnerships and other ventures that invest in exploration, drilling and distribution of oil and gas. Read this alert.
Promissory Note—a form of debt, like a loan or an IOU, that a company might issue to raise money. Learn more.
Off-exchange Foreign Currency (FOREX)—trading in non-U.S. currencies. Take the National Futures Association's e-learning program for retail forex trading.
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