They can't call you repeatedly to annoy, abuse, or harass you. Before investing, you should always get answers to the questions below and written information about the investment. If you do decide to buy from a cold caller, do not give your checking or savings account numbers to the broker over the phone. Brokers must get your written permission, such as your signature on a check or an authorization form before they can take money from your checking or savings account. Brokers who lie to you about any important aspect of an investment opportunity violate federal and state securities laws.
Honest brokers use cold calling to find clients for the long term.
They ask questions to understand your financial situation and investment goals before recommending that you buy anything. While you may find their cold calls annoying, honest brokers who follow the cold calling rules are acting within their rights. These strangers will hound you to buy stocks in small, unknown companies that are highly risky, or sometimes, part of a scam. Watch for these signs of trouble. Aggressive cold callers speak from persuasive scripts that include retorts for your every objection.