QUESTIONS TO ASK BEFORE YOU INVEST
It is important for any investor whether a first-timer or one who has been investing for so many years to ask some basic questions before investing his/her hard-earned money into any investment.
Question 1: Is the investment registered?
Registration is essential because it provides investors with access to key information about the company’s products, services, management and finances. Any company offering the sale of securities must be registered with the Securities and Exchange Commission.
Be a smart investor by checking whether the investment is registered with the Securities and Exchange Commission.https://sec.gov.ng/
Question 2:Do you have a good knowledge of the investment?
It is important to understand the investment before investing your money. It is not a good idea to invest money into an investment that you practically knows nothing about.
Meticulously read an investment’s prospectus or disclosure statement. After reading and you still do not understand please seek help from a trusted financial professional. Still not satisfied, you should think very hard before investing.
Question 3:Is the seller licensed?
There are con brokers out there seeking to defraud vulnerable investors of their hard-earned money. Be a smart investor, check the background of anyone promoting an investment opportunity, even before learning about the opportunity itself.
Seek information on the broker’s and the investment he /she is promoting from; Email: firstname.lastname@example.org,Phone: +234 (0) 94621168 (8.30am-4pm),https://sec.gov.ng/
Question 4:How do the risks compare with the potential rewards?
The potential for greater returns comes with greater risk. Understanding this crucial trade-off between risk and reward can help you separate legitimate opportunities from unlawful schemes.
Investments with greater risk may offer higher potential returns, but they may expose you to greater investment losses. Keep in mind every investment carries some degree of risk and no legitimate investment offers the best of both worlds.
Many investment frauds are pitched as high return opportunities with little or no risk. Ignore these so-called opportunities or, better yet report them to the SEC.
Question 5:Where can you seek help?
After checking out the investment background, products, services, professionalism etc. Seeking a piece of unbiased information can be a great advantage when it comes to investing smartly.
Make it a habit of using the information and tools on SEC websites. If you have a question or concern about an investment, please contact the SEC https://sec.gov.ng/