As a new investor, there are questions you should ask yourself, and research that should be done about a company before you decide to invest your money into them. To a seasoned investor, or an investment broker, this becomes an integral part of their decision process, and it should be routine for all investors. Here are some steps every investor should take before investing in a business.
“Before investing, check registration. Why is registration important? Securities industry professionals are required to register with the securities regulator in each province or territory where they do business. Registration helps protect investors because securities regulators will only register firms and individuals if they are properly qualified. Use the National Registration Search to check if your adviser or firm is registered.”
“Do an online search and look through news releases for information about an individual or firm. The news can often tell you about unhappy victims, court cases and even rumors that you may want to further investigate. You can also keep up to date with the latest investor alerts from across the country.” Other resources suggest doing a quick search on the companies CEO, their vision and their plan for growth. These are all valuable pieces of information to align your goals with your investment – Investments are a long-term relationship!
“Look up current or previous enforcement proceedings, decisions and orders to see if there is any disciplinary history for a company or individual offering you an investment.
Check whether a company or individual is appearing before the ASC or is the subject of a current or upcoming enforcement proceeding.
Check out any ASC decisions and orders, or exemption orders for an issuer or registrant.
The Alberta Securities Commission offers several “Helpful Links” and resources for new or inexperienced investors – and important questions that should be answered before investing to be protected from potential fraud. They also offer resources to find a professional investment advisor, which is something every investor should have.
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