Good Sources for Good
Information for Good Investing
Before you invest, you should always do your
homework and rely upon reputable sources for information. Good sources for any
investment information are brokers or investment advisers who you have worked
with or are knowledgeable of. They can help find SEC filings and get other
written information about the company and its business, finances, and
management. Be sure to carefully read the prospectus and the company's latest
Another good source is promotional material
provided by investment newsletters, research reports, or
radio and television shows. When properly done, the investors get the benefit of
the research done by the promoter. Reputable promoters only place their
recommendation on companies they believe in, as their value to the investor is
only as good as the companies they promote. The federal securities laws require
promoters to disclose who paid them, the amount, and the type of payment.
You can also do you own research by:
- Going directly to the company you are
interested in - Ask the company if it is registered with the SEC and files
reports. If the company is small and unknown to most people, you should also
call your state securities regulator to get information about the company,
its management, and the brokers or promoters who've encouraged you to invest
in the company.
- Use the EDGAR database - EDGAR allows you to find out whether a
company files with SEC and get any reports you are interested in. For
companies that do not file on EDGAR, check with the SEC's Public Reference
Room to see whether the company has filed an offering circular under Reg A.
- Contact your state securities regulator - They
are a good source of information on a company and the people behind it. Look
in the government section of your phone book or contact the North American
Securities Administrators Association to get the name and phone number. Even
though the company does not have to register its securities with the SEC, it
may have to register them with your state. Your regulator will tell you
whether the company has been legally cleared to sell securities in your
state. Too many investors could easily have avoided heavy and painful
financial losses if they only called their state securities regulator before
they bought stock.
Other government regulators, such as banking regulators are also good places
to look for information. Visit Federal Reserve System's National Information
Center of Banking Information site at www.ffiec.gov/NIC,
the Office of the Comptroller of the Currency at
www.occ.treas.gov, or the
Federal Deposit Insurance Corporation at www.fdic.gov.
- The Secretary of State - Contact the Secretary
of sState where the company is incorporated to find out whether the company
is a corporation in good standing. You may also be able to obtain copies of
the company's incorporation papers and any annual reports it files with the
- Commercial databases - You can also access
commercial databases for more information about the company's history,
management, products or services, revenues, and credit ratings. There are a
number of commercial resources you may consult, including: Bloomberg, Dun
& Bradstreet, Hoover's Profiles, Lexis-Nexis, and Standard & Poor's
- Of course, the old fashioned way also works -
You can always visit your local public library or the nearest law or
business school library. You'll find many reference materials containing
information about companies. Ask your librarian about additional resources.
Finally, if you have been asked to invest in a
company and you are unable to find out anything on them, you may have come face
to face with a scam. That is the time to report them to the SEC.
Disclaimer - The information contained in
the documents in this website should not be construed as an offer to
sell, or a solicitation to buy, any securities referred to herein.
The information is considered reliable, but not guaranteed as to
accuracy or completeness. TheStockAdvisor specifically disclaims
any liability in connection with the documents and/or information
contained within this website. See complete