Olympia – With a new school year about to begin, the Washington State Department of Financial Institutions Securities Division reminds investors to take stock of their financial education and arm themselves with the knowledge to sidestep this year’s Top 10 Investor Traps.
DFI’s Director of Securities Michael Stevenson says investors under pressure from the struggling economy need to resist the lure of sales pitches to rebuild their savings.
“An educated investor should be alert at all times, but especially when money is tight,” Stevenson explained. “Falling into an investment trap makes it harder to get back on solid financial ground.”
The following traps were determined to be the top 10 for 2009 by the Enforcement Trends Project Group of the North American Securities Administrators Association, of which DFI’s Securities Division is a member. Many of the traps identified promise high returns to cash-strapped investors -- but provide little, if any, disclosure of risks and offer high commissions to aggressive sales forces.