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.
"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 new rules effective May 16, 2016, 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.
FINRA is reissuing this Alert because of concern—reflected in a recent enforcement action—that some investors may be the recipients of misleading information regarding certain public non-traded REITS. Some investors may also receive recommendations to purchase these products without adequate investigation by the firm or individual broker to determine whether these or similar investments are suitable.
FINRA is issuing this alert to provide basic information about RMDs, and to provide answers to a number of common RMD questions. We focus on RMDs from traditional IRAs because these are the type of retirement accounts where individuals are directly responsible for computing required minimum distributions.
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.
Maybe you’ve seen ads promoting “High CD Yields!” that offer rates significantly higher than other bank products. The promotion certainly grabs your attention, and that’s what the promoters want. If you inquire about the certificate of deposit (CD), you may find yourself listening to a sales pitch and ultimately owning a very costly, potentially risky investment—something much different than a CD.
This brochure, brought to you by FINRA and the Securities Industry Financial Markets Association (SIFMA), describes the critical steps you can take to safeguard your financial accounts and help prevent identity theft.