Investing money in stocks has grown in popularity among millions of Americans as a way to increase their financial security and prosperity. Although investing may bring positive benefits, one must realize that there will always be risks involved. Therefore, it is necessary for consumers to educate themselves before investing their money. After deciding to invest, you must find someone you can trust with your money. Unfortunately, not only is investing risky, choosing the right person to invest with can be just as risky.
Many consumer invest using the services of a broker.
Brokers may also be referred to as dealers, sales representatives, stockbrokers, account executives, or registered representatives. It is in your best interest to talk to potential salespeople at several firms, and if possible meet with them face to face. The NASD will provide information on the disciplinary history of a broker or a brokerage firm. Potential investors should also make sure that brokers and brokerage firms are licensed to operate by securities regulators in their state. Understand how the sales representatives are paid.