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Investor Alerts

Investor Alerts

New technology such as electronic cigarettes, often called e-cigarettes, can give rise to legitimate investment opportunities. But sometimes it opens the door to fraud. The SEC recently issued a trading suspension for a company that purported to make disposable electronic cigarettes because of concerns about manipulative activity related to the company’s common stock.

New technology such as electronic cigarettes, often called e-cigarettes, can give rise to legitimate investment opportunities. But sometimes it opens the door to fraud. FINRA is issuing this Alert to warn investors to be wary of aggressive promotions touting stocks that claim to capitalize on various aspects of the e-cigarette and vaporizer, or "vape," market.

Precious metals are notorious for price movements that can peak investor interest during upswings and downswings alike. If you are thinking that now is the time to invest in physical precious metals such as silver, gold or maybe palladium or platinum, be aware of the risks involved. They include the potential for high-pressure sales tactics and even fraud.

Precious metals are notorious for price movements that can pique investor interest during upswings and downswings alike. If you are thinking that now is the time to invest in physical precious metals such as silver, gold or maybe palladium or platinum, be aware of the risks involved. They include the potential for high-pressure sales tactics and even fraud.

FINRA and the SEC's Office of Investor Education and Advocacy are issuing this alert to warn investors that some low-priced "penny" stocks that are aggressively promoted may in fact be stocks of dormant shell companies—companies that have no or nominal business operations or non-cash assets for an extended period of time. Many dormant shell companies that continue to trade in the over-the-counter (OTC) market are susceptible to market manipulation.

Some low-priced "penny" stocks that are aggressively promoted may in fact be stocks of dormant shell companies that are susceptible to pump-and-dump scams.

Investors frequently get invited to free seminars that promise to educate them about investing strategies or managing money in retirement—often with an expensive meal provided at no cost. But just because someone buys you breakfast, lunch or dinner doesn't mean you have to buy what they are saying—or selling.

FINRA is issuing this alert to caution those interested in funds that invest in frontier markets to carefully consider the heightened risks in these markets. Frontier fund investments may provide potential diversification and periods of higher returns than can be obtained through more traditional investments.

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