What's New in Investor Education

Every day, millions of equity trades are made off the major stock exchanges in what’s known as over-the-counter (OTC) trading. It’s a massive part of the global financial market, with OTC trading in certain types of financial products accounting for billions of dollars in trades daily. Learn more about OTC trading in equities and the unique risks that may be involved.

Have you ever wondered who protects investors—and how? FINRA, the Financial Industry Regulatory Authority, is a not-for-profit organization authorized under the federal securities laws and registered with the Securities and Exchange Commission (SEC). Alongside the SEC, FINRA oversees U.S. member broker-dealers and their personnel, including individuals who recommend or sell securities products to the public. FINRA’s mission is protecting the investor and ensuring the integrity of our country’s securities markets.

Whether you need to report a gain or can claim a loss after you sell an investment depends on its cost basis. Learn the basics about how to calculate an investment’s cost basis, understand the tax consequences, and what to report to the IRS.

In recognition of Financial Literacy Month, FINRA is highlighting five steps you can take to boost financial capability—both your own and that of others you care about. Whether you’re looking to build your own base of financial knowledge or are seeking ways to help others, FINRA and the FINRA Investor Education Foundation offer many resources to support you and your loved ones along your financial journey.

SEC Regulation Best Interest sets forth the standard of conduct broker-dealers must provide to their retail customers when they make recommendations of securities or investment strategies involving securities. Form CRS is a relationship summary disclosure that broker-dealers and SEC-registered investment advisers must provide retail investors.

Precious metals IRA frauds frequently target older workers and retirees because they typically have more money saved in their qualified retirement accounts than younger people. Before you consider rolling over your retirement plan to a gold or silver IRA, here are 10 questions you should ask.

If you graduated with a sizable amount of debt, you aren't alone. The high costs of college mean it’s common to finish school with thousands of dollars in student loans. Though repaying student loans might feel overwhelming, educating yourself about your obligations and options can help you develop a plan to tackle your debt.

In investment-related impersonation schemes, scammers misuse the name of real registered investment professionals or firms to create the appearance of legitimacy. Imposter scams can be difficult to spot unless you know what you’re looking for. Here are patterns to be aware of and tips to help spot the fakes.

Among the many opportunities available to investors are those involving “crowdfunding.” Crowdfunding generally refers to the use of the internet by small businesses to raise capital through limited investments from a large number of investors. Crowdfunding investments carry significant risk, and you can lose some or all of your investment.

When you think of investments and brokerage firms, you probably think of opening an account and buying stocks, bonds or mutual funds. But when you enter into a subordination agreement, the investment you’re making is in the brokerage firm itself. This investment can be very risky and isn’t suitable for everyone.

Trade date is the day your order to buy or sell a security is executed; settlement date is the day on which funds and the securities must be delivered. Beginning on May 28, 2024, the new standard for settlement will become the next business day after a trade, or T+1.

The SEC, NASAA and FINRA are jointly issuing this Investor Alert to make investors aware of the increase of investment frauds involving the purported use of artificial intelligence (AI) and other emerging technologies. Bad actors are using the growing popularity and complexity of AI to lure victims into scams. Here are a few things to look out for to help you keep your money safe from these frauds.

Low-priced securities are often known as “microcap stocks” or “penny stocks.” While these securities can be legitimate investments, they’re also high-risk and should be approached with caution by the average investor.

If putting all your financial information online in one place sounds like a good idea, there are many companies ready to help you organize your financial life. However, before you share your financial details with data aggregators, it pays to know how these services operate and how to protect yourself from potential privacy and security risks.

FINRA has seen a recent significant spike in investor complaints resulting from recommendations made by fraudulent “investment groups” promoted through social media channels. Complaints describe bad actors, posing as registered investment advisers, who advertise “stock investment groups” on Instagram and other social media channels and then turn to encrypted group chats on WhatsApp to communicate with interested investors and pitch investments.

Navigating your finances might seem impossible at first—maybe you’re facing student loan debt, low income, expensive housing costs or all of the above. But taking a few key steps, like setting financial goals, paying off debt and starting your retirement savings, can help you feel more in control.

Lenders often promote securities-backed lines of credit as an easy way to access extra cash by borrowing against the assets in your investment portfolio without having to liquidate these securities. While they might seem attractive when markets

If you’re not careful, holiday expenses—including non-gift items and entertainment costs—can add up quickly. Follow these four steps to set a thorough holiday budget and keep spending under control.

If you’re interested in over-the-counter (OTC) trading, you might have heard about dark pools, a type of alternative trading system (ATS) that was designed to handle large trades for institutional investors anonymously. Dark pools allow large buyers and sellers to trade large blocks of shares without causing the market to move against them.

On March 16, 2023, FINRA published responses to frequently asked questions concerning the MMTLP corporate action and trading halt (March 16, 2023, MMTLP FAQ). In that corporate action, the issuer decided that MMTLP shares would be cancelled and investors in those shares would receive a distribution of shares of Next Bridge Hydrocarbons, Inc. (Next Bridge). FINRA has continued to receive questions regarding the circumstances surrounding these events. In particular, some have questioned the level of short selling in MMTLP and suggested that there was a substantial amount of “counterfeit shares.” Although it is not clear what is meant by the term “counterfeit shares,” it has been used in social media when discussing “naked” short selling in a security and failures-to-deliver (FTDs). Some investors have expressed concern that, even though their brokerage account statements include shares of Next Bridge in their account, these shares may not have actually been delivered to their broker-dealer.

Service members or dependents may receive one-time lump sum payments for injuries, loss of life, insurance, or lawsuit proceeds. These payments can replace lost future income, so take steps to ensure they provide a long-term benefit for your family. To make the most of military benefits and lump sum payments consider these tips.

Pretexting is a tactic that hinges on telling a compelling—but fake—story. Hackers attempt to deceive their targets by establishing a false sense of trust, using a fabricated story, or pretext, to get you to download malware, send money or share sensitive information, to name a few examples. Here are some of ways you might be targeted—and how you can thwart an attempt to coax you into believing a bogus story.

This Friday the 13th, you might take some extra precautions to ward off bad luck. But even if you’re not superstitious, it’s worthwhile to consider how to safeguard your financial situation—not just today, but every day. Use these four tips to ward off bad luck when it comes to your finances.

The SEC’s Office of Investor Education and Advocacy (OIEA), the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), the Securities Investor Protection Corporation (SIPC) and the North American Securities Administrators Association (NASAA) are issuing this Investor Bulletin to provide investors with information about the three themes of World Investor Week 2023, a global campaign promoted by the International Organization of Securities Commissions (IOSCO): investor resilience, crypto assets and sustainable finance.

When you enter an order to buy or sell a stock, your registered financial professional must decide where to route your order. The most familiar type of execution venue is a traditional exchange. However, other execution venues, including alternative trading systems, single-dealer platforms and wholesalers, have risen in popularity in recent years.