Upon review of the prospectus, confirmations, account statements, or other documents, the investor discovers information that does not coincide with representation made by the broker. Investor calls broker to check on status and learns about material information previously unknown. Never invest in a product you don't understand. Keep contemporaneous notes of your conversations with the broker. This is most frequently found with low-priced, speculative securities.
Investor receives frequent phone calls.
If it sounds too good to be true, it usually is. Never send money to a firm or broker that you are hearing from for the first time simply based on a telephone sales pitch. If you do so, be prepared to accept the risk of losing the entire investment. Call the state securities office and Better Business Bureau. Meet with your broker and visit the firm, if possible.