Investor Alerts

"Crowdfunding" generally refers to the use of the Internet by small businesses to raise capital through limited investments from a large number of investors. Under SEC rules, the general public can invest in capital raising by start-up companies. This advisory is designed to help the public understand the crowdfunding rules and processes so they can make informed decisions about the risks and rewards of investing in these early-stage businesses.

If you own bonds or have money in a bond fund, there is a number you should know. It is called duration. Although stated in years, duration is not simply a measure of time. Instead, duration signals how much the price of your bond investment is likely to fluctuate when there is an up or down movement in interest rates. The higher the duration number, the more sensitive your bond investment will be to changes in interest rates.

FINRA is issuing this alert to inform brokerage account holders, family members and other beneficiaries about inherited IRAs. We also provide tips for making the IRA inheritance process as efficient and trouble-free as possible.

FINRA cautions investors who are considering binary options to be alert to potentially fraudulent schemes, and particularly wary of non-U.S. companies that offer binary options trading platforms.

FINRA has received a number of calls from individuals who have received unexpected checks that purport to be issued by FINRA. The checks are counterfeit, and may arrive by special delivery and require a recipient’s signature. The arrival of these checks may be linked to job search scams, though callers note that there is no direct reference to a job search relationship accompanying the mailing—just a check. We are updating and reissuing this alert to reiterate the risks to cashing unexpected checks and offer tips to avoid being a check scam victim.

Boiler room-style calls are characterized by high pressure sales pitches from people who call you out of the blue, working from a list or simply dialing from a phone book. FINRA is issuing this alert because we have seen an increase in aggressive calls touting the next hot stock. Callers tend to target seniors, and have been all-too successful in conning people of all ages into buying penny stocks and other speculative investments.

Investors who need cash—or who want to tap the value of their portfolios without selling their investments—might be tempted to apply for a "stock-based loan," pledging fully paid securities as collateral for the loan. FINRA is issuing this Alert to educate investors about non-recourse stock-based loan programs, including risks and rewards and key questions to ask.

It's never too early to consider how you want your financial affairs to be managed if something happens to you. One solution is to grant a power of attorney (POA) for your investment account assets to your spouse, sibling, adult child or close friend—someone you trust to act wisely and in your best interest.

Your brokerage firm has an obligation to safeguard your personal financial information. And every investor should take time to understand their firm’s cybersecurity procedures. But even the best procedures cannot prevent all instances of identity theft—especially if the vulnerability lies with you, the customer. Here are critical steps you can take to safeguard your financial accounts and help prevent identity theft.

FINRA is publishing this Alert to warn investors not to send money or provide personal information associated with a widespread IRS impersonation scam timed to coincide with the October 15 deadline for anyone who filed a federal tax extension last April.

FINRA is issuing this investor alert to help investors better understand smart beta products.

You may not be able to control if or when your company closes a plant or lays off workers—but you can take steps to manage the financial impact of those events.