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A Penny for Your Penny Stocks

The Financial Industry Regulatory Authority (FINRA) recently fined a Minneapolis broker-dealer $1 million for not properly supervising its large penny stock business. The action charges that […]

By |September 25th, 2014|Categories: Scams|Tags: , , , , , , , , |0 Comments

High Frequency Trading: Luddites, Regulators and Antiquated Factories

Luddites don’t like high frequency trading.  Luddites were  textile workers who protested against newly developed labor-saving machinery in the early 19th century so the term […]

By |July 9th, 2014|Categories: Wall Street|Tags: , , , , |0 Comments

Looking for Help on How to Trade? Make Sure the Advisor Puts Your Interests First!

In the good old days, there was a straightforward relationship between investors and stockbrokers who were paid commissions to help investors trade their portfolios. They recommended stocks for purchase and sale based on input from analysts that worked for their firms.

That whole model fell apart in 1975 when brokerage commissions were deregulated. This change spawned a new type of firm that was loosely described as a discount broker. Then, when you needed help on how to trade, you had a choice: the traditional full service brokerage firm or the new upstart discount broker. […]

How to Buy Stocks and Avoid Becoming a Closet Index Fund

How to buy stocks is usually focused on how to buy high quality stocks that will provide superior performance over the next few years. For example, if you purchased Apple at 100 you would have a 700% gain. If you did not buy Apple you are not alone. It is very difficult to predict the future price movement of individual stocks. This is why most investors have a number of stocks. However, diversification is a defensive, not an offensive strategy. The primary role of diversification is to minimize the risk of large losses.

An index fund is a managed portfolio of securities that is designed to replicate the performance of a segment of the stock market. For example, the S&P 500 index duplicates the performance of 500 large capitalization U.S. stocks. The EAFE (Europe, Australasia, Far East) index is supposed to represent the collective performance of the stock market in 22 foreign countries. […]

What Does Your Investment Policy Statement (IPS) Do For You?

What is an Investment Policy Statement (IPS), and why is it important to anyone working with an investment manager? After reviewing our client surveys from […]

Insurance Agency Sells Fake Promissory Notes

The SEC filed a federal lawsuit against a Grand Island, Nebraska insurance agency for stealing up to $100 million from investors.  The largest investor lost […]

By |July 3rd, 2009|Categories: Scams|Tags: , , , , , |0 Comments