2. How to find Investment Information 1. Printed sources that report financial news The Wall Street Journal – newspaper published every business day, provides prices, graphs, articles Magazines: Kiplinger’s, Forbes, Fortune, Money Provide evaluations and comparisons to help you judge investments

3. How to Find Investment Info (cont.) 2. Internet – updated in minutes stock tickers company websites – data on sales, profits, products

4. How to Find Investment Info (cont.) 3. Stockbrokers A. Full-service broker provides advice and completes transactions includes fee for advice in addition to commission be careful: advice/commission involve same person B. Discount broker – only carries out transactions – best if you do your own research

5. How to Find Investment Info (cont.) 4. Financial planners flat fee for investment advice evaluate budget, discuss life-span goals, make recommendations

6. Check Out Investment Offers Be suspicious of get rich quick schemes Evaluate investment offers 1. Invest in large, well-established stock brokerage firms. 2. Ask the name, address, and phone number of company that contacts you about an investment offer. 3. Ask for a copy of investment offers in writing.

7. Check Out Investment Offers (cont.) 4. Be weary of possible dishonesty -“decide now” salespeople – conditions do not change that quickly -insider information – against the law -demands for immediate payment – generally have 5 days to pay **Best protection is common sense!

8. Investment Regulation 1. NASD – National Assoc. of Securities Dealers -tests and certifies stockbrokers -maintains listing of complaints filed against its stockbrokers

9. Investment Regulation (cont.) 2. SEC - Securities and Exchange Commission - created by Congress after 1929 stock market crash - responsibility for enforcing laws concerning the trading of stocks and bonds - licenses stockbrokers and investment advisors - final authority on matters of financial reporting

10. Functions of the SEC Investigates consumer complaints and has the power to close dishonest operations Reviews corporate documents on financial condition and business practices for accuracy Prevents insider trading – trading stocks based on information that is not available to general public