Main Content

investing in shares online
Before investing or trading online, investors are advised to research the online brokers they plan to employ, assuring that those firms are licensed within their state or provincial jurisdiction. Informed investors are less likely to fall victim to unlawful securities schemes, such as the so-called ’boiler room’ scam. The US Federal Government provides practical tips to avoid investment scams via their OnGuard Online website. The website cautions investors to be wary of internet newsletters, investing blogs, or bulletin boards. Stock manipulators often float false information and ’hot tips’ on these sites, as part of an effort to affect the price of shares in a particular security. Investors are also advised to trade stocks online and turn to unbiased sources when researching investments. The U.S. Securities and Exchange Commission (via their EDGAR database) is one example.3 Investors must fully understand the potential risks of investing without the help of a trained stockbroker or investment advisor. These professionals are experienced both in trade and education, and forgoing their advice could be costly. Inexperienced investors are easy prey for stock manipulators and pump and dump schemes often associated with penny stocks. For this reason, many online brokers offer a number of investment tools to educate and inform new investors. purchase shares