Educational Consumer Tips
Author: Better Business Bureau
Before investing research the company and the type of investment. Have a clear understanding of company policies and procedures in regards to your investment. Call the regulatory agency in your state to determine what it means to be FDIC insured and don't assume that because a bank checking or savings is FDIC insured that other investments are also FDIC insured.
Ask the company of the risk of a particular investment. Be suspicious if written disclosures are played down as government formalities. If the risk disclosure states you could lose the whole investment understand that you could lose the investment.
Be cautious if the company selling you stock, assets or partnership units has not registered its securities. Companies that register their securities file prospectuses and annual reports with securities regulators.
Know whom your dealing with. Obtain proof that the company is properly registered with the state (if required). Information may be obtained by contacting the South Carolina Attorney General's Office/ Securities Division at 803-734-9916 or South Carolina Insurance Commissioner's Office at 800-768-3467 (in state) or 803-737-6180 (out of state).