FINRA Investor News


September 2013


Investor Alert: Private Placements—Evaluate the Risks before Placing Them in Your Portfolio


Investor Alert: Private Placements—Evaluate the Risks before Placing Them in Your Portfolio

Each year, companies raise billions of dollars selling securities in non-public offerings that are exempt from registration under the federal securities laws. These offerings, known as private placements, can be a key source of capital for American businesses. But investing in them is risky and can tie up your money for a long time. Read more.


Don't Make Payments to Individual Sales Reps


Don't make checks or other payments payable to your broker, adviser or another individual for an investment. This is a lesson that 30 investors in Oklahoma learned the hard way. They wrote checks to their adviser, expecting him to invest the money. Instead, he and a friend used the most of it for gambling, personal expenses and Ponzi payments.


In most cases, you should only send money directly to your brokerage firm, its clearing firm or another financial institution. This will help you keep track of the funds you've deposited in your account—and avoid the potential for fraud.See more tips for tracking your investments.



Podcast: Take Financial Control—Track Your Spending


Podcast: Take Financial Control—Track Your SpendingThe first step to getting your finances under control is to know where your money is going. It's easy to track your spending if you focus on a short timeframe. Just follow these five steps.


Listen  | 4 min. 0 sec.



FINRA Investor Education Foundation: Many of Us Are Exposed to Financial Scams


The FINRA Foundation has issued a new research report, Financial Fraud and Fraud Susceptibility in the United States (PDF 417 KB), based on a survey of nearly 2,400 U.S. adults age 40 and older. The report shows that more than 80 percent of respondents have been solicited to participate in potentially fraudulent schemes, and more than 40 percent can't identify some of the classic red flags of fraud.


Infographic (8 in 10: Financial Fraud in the United States—202x100)


According to experts, this fraud activity may be costing Americans about $50 billion annually (see the infographic).


"When it comes to financial fraud, America is a nation at risk," said FINRA Foundation President Gerri Walsh. "Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money. And far too few Americans are able to detect likely fraudulent sales pitches."


Read more about the report.



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9/19/13 – Board of Governors Authorizes FINRA to File Recruitment Compensation Proposal with the SEC


9/19/13 – FINRA Issues Public Statement, Framework Regarding FINRA's Approach to Economic Impact Assessment for Proposed Rulemaking


8/22/13 – FINRA Fines Morgan Stanley $1 Million and Orders Restitution of $188,000 for Best Execution and Fair Pricing Violations in Customer Bond Transactions



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