13 Things Everyone Should Know About Investing Whether you’re a first-time investor or have been investing for many years, there is some basic information you should know about investing. Below is a list of thirteen pieces of investing-related information that may help you make informed financial decisions and avoid common scams.
Checking the background of an investment professional is easy and free.
It can be costly to ignore the fees associated with buying, owning, and selling an investment product.
Diversification can help reduce the overall risk of an investment portfolio.
It can be risky to invest heavily in shares of any individual stock.
Active trading and some other very common investing behaviors actually undermine investment performance.
Research shows that con-artists are experts at the art of persuasion, often using a variety
of influence tactics tailored to the vulnerabilities of their victims.
Some investments provide tax advantages.
Paying off high-interest debt may be your best “investment” strategy.
Promises of high returns, with little or no associated risk, are classic warning signs for fraud.
Any offer or sale of securities must be either registered with the SEC or exempt from registration. Otherwise, it is illegal.
Mutual funds, like other investments, are not guaranteed or insured by the FDIC or any other government agency.
The key to avoiding investment fraud, including scams that target specific groups, is using independent information to evaluate financial opportunities.
Unbiased resources are available to help individuals make informed investing decisions.