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Information for Stock Buyers ~ FINRA Investors Bulletin

FINRA has recently issued an investor's bulletin containing information for stock buyers. In the bulletin, FINRA suggests that stock investors should be using all of the information resources available to research the stocks they are looking at.

Information for Stock Buyers

FINRA recommends that stock buyers review, at a minimum, the following sources of information that is readily available.

  • Research the company ~ For current information about a company check out the SEC’s EDGAR database.
  • Find out where the stock trades ~ By looking at the exchange requirements an investor can get an understanding if there has been an individual evaluation of the company’s size or quality.
  • Verify the trading symbol ~ Make sure you are buying the intended securities and not another closely identified security.
  • Watch for Q’s – A q in the fifth place of a securities symbol frequently denotes that stock as being in the middle of a bankruptcy. Be aware that the stock may still be trading but that the value of the company may be in question.

In short an investor should obtain as much information as possible before pursuing a stock purchase. Do not feel pressed to enter into any transaction without understanding what you exactly you are purchasing.

If you are searching for an investment professional, feel free to contact the firm of Penzien & McBride for assistance with evaluating your possible broker or financial adviser. Our Clinton Township office is conveniently located in Clinton Township and stands ready to assist you with your due diligence project.

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