Personal Finance

If you’re seeking customer support or service from your brokerage firm, you might turn to search engines like Google or Bing to quickly find the right contact. But be careful where you click. That advertisement you think is for your brokerage firm might actually be part of a scam.

Most privately held companies have few financial reporting requirements. If you’re curious whether they’re profitable or what their margins are, you’ll have to take their word for it—assuming they even discuss their performance.

But it’s a different story for public companies that raise investor money in regulated securities markets and trade on exchanges like Nasdaq and the New York Stock Exchange. According to Securities and Exchange Commission (SEC) rules, these companies must follow a strict schedule for reporting accurate quarterly and end-of-year financial results.

Many people dream of striking it rich with a sudden financial windfall that could drastically change their fortunes. Winning the lottery or unexpectedly inheriting a multimillion-dollar estate will remain a fantasy for most, but a greater number of individuals will see themselves benefit from some sort of financial payout in their lifetime. 

It’s an alluring offer: You hear from someone who claims to be able to help you recover money you lost from a previous investment or other fraud. The information sounds credible, and at first glance the organization appears legitimate. The money that’s promised isn’t only welcome but seems well-deserved compensation for previous losses.

When it comes to equities trading, movements of share prices on major stock exchanges like the New York Stock Exchange and Nasdaq tend to dominate headlines. But every day, millions of equity trades are made off the stock exchanges in what’s known as over-the-counter (OTC) trading.