What You Should Know About Online Investing

By: Jim Brown

Everybody is looking to get rich quick. There are many investment opportunities you are faced with on a daily basis. From get rich quick schemes, to offers of money from an estate from overseas, to stock investment opportunities. Using the internet as your tool, you can research any opportunity you may think will be profitable.

It used to be that when you wanted to invest in the stock market or make an investment in a new company, you had to go to a broker and he/she would do the trading for you.

With the advent of computers and online investing, it has become an entirely different animal. You can easily invest your money yourself, if you take the time to educate yourself about the process.

No longer do you have to put your money in the hands of someone else. You can do research about online investing before you put out a single penny of your money. With all the knowledge that is within the average person's reach, there is no excuse to be taken in by clever con-artists or scams.

When you learn about an investment opportunity through the internet, it is best to assume that it is not legitimate. Whether you find these offers in a newsletter, chat rooms, or the website of a company you are unfamiliar with, it is best to proceed as if it were a scam.

Get your facts straight before you put money on the line. Before you spend money you can ill afford to lose, find out if the investment is registered. There are a few ways you can do this. You can check out the EDGAR database which belongs to the SEC. You may not find a smaller company registered because it isn't mandatory. You can contact the securities regulator in your state to find out if the company you want to do business with is registered there. This number can usually be found in the government section in your local telephone book. If you have trouble finding it, you can call NASAA or the North American Securities Administrators Association, or you can visit their website.

Most investments that are scams, involve securities that are not registered. Even if the company you choose is registered, and has filed the proper reports with the SEC, does not
mean that it is a good investment. The opposite can be true too, just because your company isn't registered, nor files a report with the SEC, doesn't necessarily mean the company is a fake.

You might be setting yourself up for a serious loss when you invest in a company that isn't widely recognized, just because of some tip you may have found on a message or bulletin board, or someone was throwing around advice in a chat room. You can make a simple call to your state regulator to ensure the company you are thinking of investing in is a legitimate investment.

From there, you can do the research about the investment, to be sure it is something you are willing to risk your money on.

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