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Securities Division

Investor Education - 20 Questions to Ask a Person Selling Investments

 

  • Are you registered with the Tennessee Securities Division?
  • How did you get my name?
  • Where is your office?
  • From where are you calling?
  • Where are you from, originally?
  • How long have you been in this business?
  • How long has your company been in business?
  • Can you give me the names and telephone numbers of three other investors in my local community who have made profits on this investment?
  • How long will the advertised rate of return last?
  • Is this investment guaranteed? (most are not)
  • What specific service or product does this company make?
  • Can you send me copies of the company's financial statements and a list of satisfied customers whom I may call?
  • What are the risks that I will lose money?
  • Is this investment traded daily on a regulated exchange?
  • What are the total commissions and fees that you and your company will make during the entire time of my investment?
  • What will it cost to get my money back out of the investment?
  • How much money have you, personally, invested in this deal?
  • Will you send me written materials in the mail?
  • May I have your home phone number so that I can call you later?
  • Will you call my broker-dealer and/or investment adviser (or banker, insurance agent, lawyer, accountant, or other trusted financial adviser) with the same deal so that I can ask them for another opinion?

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