What's New in Investor Education

Recently, FINRA has seen an increase in fraud schemes in which scammers target investors—particularly older investors—and manipulate them into transferring funds from their brokerage and other financial accounts, ultimately stealing their money.

Reliable information is an essential part of making informed investment decisions. FINRA and other industry regulators offer free tools and resources to help investors research investment professionals, firms and products with confidence.

Pump-and-dump scams have been a mainstay of financial fraudsters for decades. They involve three core elements: the setup (fraudsters choose their target stock), the pump (they increase the share price), and the dump (they rapidly sell their stock). Learn how to spot a pump-and-dump scam and ways to protect yourself.

Pre-IPO investing, the chance to buy shares of a private company before it lists on a stock exchange, can be tempting. But if you’re offered early access to shares of a popular private company or a fund that claims to own those shares, be aware that these transactions carry significant risk. Some are outright scams designed to steal your money.

When researching retirement and other types of investment accounts, you might see terms used to describe the tax treatment of certain types of account contributions, earnings and investment products. Understanding these terms can help you make investment decisions based on your personal needs and circumstances.

Investing early for a child’s future helps to build a strong financial foundation by maximizing long-term growth potential. Different account types offer distinct advantages. When deciding which account option is right, it’s important to consider investment objectives, contribution limits and withdrawal restrictions.

Deepfakes and vishing are two rapidly evolving cyber threats facing investors today. They involve videos and calls that might look and sound real, but might actually be scams. How can you identify red flags, and what can you do if you suspect you may have already been scammed?

When you buy stock on margin, your brokerage firm lends you cash to purchase securities. If you execute trades that cause a margin deficit, the value of your margin account decreases, or your firm raises margin requirements, you might receive a margin call.

Trading an option contract with zero days to expiration is a strategy that has become more common as expirations in certain options have expanded to practically every day of the week. But selling and buying options with zero days to expiration can be risky.

If you’re an avid trader, you might be pursuing a strategy involving frequent, intraday trading. The possibility of making rapid returns through this type of trading can be tempting. However, frequent intraday trading comes with risks, particularly if you’re trading on margin.

One consideration when investing is whether to put your funds to work immediately or over time. If you choose the latter route, you might opt for a strategy called dollar-cost averaging. With dollar-cost averaging, you invest your money in equal portions, at regular intervals, regardless of current market conditions.

Trade date is the day your order to buy or sell a security is executed; settlement date is the day your order is finalized and on which funds and the securities must be delivered. The standard for settlement is next business day after a trade, or T+1.

In investment-related impersonation schemes, scammers misuse the name of real registered investment professionals or firms to create the appearance of legitimacy. Here are some of the tactics scammers have used to target investors and tips to protect against imposter scams.

While FINRA will never ask you for money, there are scammers who might try to convince you otherwise. These financial fraudsters pose as regulators, requesting fees to transfer funds or offering bogus investment “guarantees” that are designed to steal your money.

FINRA has adopted significant changes to its margin rule with potential impacts on active investors. If you currently engage in or are considering an active investment strategy, be sure to understand what's changing and how this will affect you.

Brokerage firm customer account takeover incidents are on the rise, according to FINRA, which has seen a notable increase in this type of fraud. Learn how these cybercrimes occur and get proactive steps you can take to secure your accounts.

Like all investments, gold and other precious metals investments—including physical precious metals—come with risk. Here are four tips that can help you sidestep pitfalls when it comes to investing in physical precious metals.

This Friday the 13th, don’t knock on wood or avoid black cats when it comes to your financial matters. Instead, take steps to safeguard your financial situation. These five tips can help you ward off bad luck when it comes to your finances.

Scammers frequently take advantage of the limited resale market for timeshares, specifically targeting motivated timeshare sellers and renters. Timeshare exit fraud is a serious problem that can lead to significant financial losses.

Many financial firms offer both brokerage and investment advisory services. If a firm provides both types of services, you might be able to choose between having a brokerage account, an advisory account or both. Be sure you understand the differences in the services provided and fees involved.

Feeder funds are one avenue through which retail investors can gain exposure to alternative investment strategies. While these funds might offer lower investment minimums than traditional alternatives, they come with unique features and potential limitations investors should carefully evaluate.

Most mutual funds and ETFs pool investor money to buy individual assets. Funds of funds are different—they invest in other funds, which can provide greater diversification but also comes with the potential for higher fees and other risks.

Have you thought about taking steps to improve your financial health? The new year is a great time to check on your investments, revisit your budget, and improve your overall financial wellness. Read on for five tips to boost your financial savvy for the year ahead.

While most financial firms prevent investors from directly using credit cards to purchase investments, there are ways to use them indirectly. But investors should exercise caution when considering using credit cards in connection with investing.

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.