Personal Finance

News reports stating that FINRA has approved a security for trading, quoting or listing are wrong in virtually every respect. FINRA does not ever qualitatively evaluate or approve a security such as a stock. Instead, FINRA verifies a broker-dealer can demonstrate it has completed its required diligence to begin quoting.

Major events and times of uncertainty—such as the current COVID-19 pandemic—have long been exploited by unscrupulous, typically unlicensed, promoters to perpetrate fraud, and microcap securities remain one of their primary tools for such schemes. This and other types of financial fraud continue to be an area of focus for FINRA and other regulators.

For some investors, a high-volume trading strategy could be something they affirmatively seek—perhaps because they have a strong appetite for risk, desire to engage in market speculation, or both. For others, such a strategy might not make sense and could be a sign of a type of misconduct known as “excessive trading.”

If you are one of those Americans without a will, vow to make it happen. Here are five things you should know to get you started.

Whether you’re expecting your first child, are the parent of a newborn or are starting to think about conceiving or adopting, it’s never too soon to think about getting your financial house in order. Here are five steps to get you started.

FINRA staff will point seniors to educational tools that can help them better understand investing, savings and investment products.

On June 30, 2020, new rules take effect that are designed to help retail investors better understand and navigate their relationships with investment professionals and make informed choices about the type of relationship for their needs and circumstances. The new Securities and Exchange Commission (SEC) rules, among other things, enhance the standard of conduct broker-dealers must provide to their retail customers and require broker-dealers and SEC-registered investment advisers (RIAs) to provide a new relationship summary – Form CRS – to retail investors.

When markets drop sharply or show signs of turbulence, investors often shift their assets to what they perceive to be safer investments. But fraudsters know this—and they can quickly change their pitches to match what investors seek.

FINRA, NASAA, and the staff of the SEC’s Office of Investor Education and Advocacy have joined together to provide this warning to investors about promoters targeting retirement accounts, as well as to provide a few key considerations for investors thinking of using 401(k) withdrawals or loans to purchase securities.

The COVID-19 pandemic is affecting most aspects of our society and daily lives, as well as the U.S. economy and markets. Events with such profound impact routinely create opportunities for financial fraud. In addition to new scams focusing on COVID-19, previous scams may also find new life as fraudsters adapt to and exploit recent events and related vulnerabilities, especially those related to the remote working environment.