FINRA Investor News

September 28, 2005
 

Investor Alert

 

Beware of Stock Fraud in the Wake of Hurricane Katrina


Financial fraud routinely follows on the heels of disaster. Hurricane Katrina is no exception. NASD is issuing this Alert to warn investors that fax and email investment scams may come your way touting stocks with the promise of huge gains in the wake of Katrina.


For example, one fax claimed that Katrina would mean a "massive run up" in the company's stock "as demand to repair homes skyrockets."


Read the Alert.

 

 

Consumer Corner

 

Checking Up on Your Credit


Check your credit report to look for signs of post-hurricane foul play. To guard against identity theft, look for accounts you did not open and any unexplained transactions. You can obtain free annual credit reports at www.annualcreditreport.com or by calling (877) 322-8228.

 

 


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Mutual Fund and ETF Expense Analyzer

Investor Complaint Center

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Hurricane Info

 

Hurricanes Rita and Katrina—Information for Investors


To help the thousands of individuals and families affected by hurricanes Rita and Katrina, NASD has developed a special Web page of including resources and information related to:

 

  • Obtaining contact information for securities firms and investment advisers

  • Receiving customer checks and other brokerage firm communications

  • Replacing lost financial and personal records

  • Tips to avoid becoming a victim of identity theft

 

Visit NASD's Hurricane Katrina and Hurricane Rita - Information for Investors.

 

 

Smart Investing

 

Do Your Homework Before Investing in Municipal Bonds

 

  • Before buying a general obligation bond, research the state, city, or county that's issuing the bond. Pay particular attention to population rates and other measures of the region's tax base, as well as any legal limits on taxation authority.

  • Before buying a revenue bond, ask your broker to give you the bond's debt service coverage ratio, which is the net operating income divided by total debt service. Highly rated bonds tend to have a ratio greater than two.

  • With all munis, check to see if the rating has gone up, down, or remained stable.

 

Read more.

 

 

Past Issues of Investor News Available

 

In response to numerous requests, previous issues of Investor News are now available on our Web site.