FINRA, the Financial Industry Regulatory Authority, recently released an alert asking investors to Stock Up on Information Before Buying Stock. FINRA encourages investors to double check that they are buying the stock that they think they are buying.
This alert comes on the tails of recent mistakes made in stock purchases of the popular social media site, Twitter, which recently went public. While there was exceptionally high demand for shares of Twitter, there was also high demand for shares of Tweeter, a bankrupt home entertainment company.
FINRA’s alert gives consumer tips to avoid these types of mistakes, including minding your “Q”s. A stock with the fifth letter of “Q” denotes a bankruptcy status. Had these investors minded their “Q”s they may have a saved themselves a lot of trouble.
Here are FINRA’s 5 tips to “Stock Up on Information Before Buying Stock”:
1. Research the company.
2. Find out where the stock trades.
3. Make sure you are buying the intended security.
4. Mind your “Q”s.
5. Understand the IPO Process.
*To read the full FINRA news release, click here: FINRA Issues New Investor Alert: Stock Up on Information Before Buying Stock