The Oklahoma Department of Securities is dedicated to empowering investors with the knowledge and tools necessary to make informed investment decisions. One of the fundamental principles of successful investing is the need to investigate thoroughly before committing your hard-earned money to any investment product or opportunity. By conducting due diligence and research, you can understand the investments presented to you, reduce risks, and feel confident about your investment choices.
Assess Your Financial Goals: Determine your investment goals and objectives. Are you looking for long-term growth, income, or capital preservation? Knowing your financial goals will help you select investments that align with your aspirations.
Risk Assessment: Evaluate your risk tolerance. Understand that all investments come with a degree of risk, and it's crucial to align your risk tolerance with your investment choices. Be honest with yourself about how much risk you are comfortable taking.
Understand the Investment: Before investing, take the time to comprehend the nature of the investment. Whether it's stocks, bonds, real estate, or other assets, understanding the fundamentals of the investment is essential. Dig deep into the specifics of the investment opportunity. Investigate the entity issuing the securities and the specifics about the products you are considering. In addition, review financial statements, risk factors, proposed use of proceeds, principals’ background, disciplinary history, insiders’ compensation, fees and other administrative costs, annual reports, and other regulatory filings.
Check Out Your Investment Professional: If you work with an investment adviser or broker/dealer, ensure they are properly registered with the U.S. Securities and Exchange Commission (SEC) and have the necessary licenses to offer investment services. You can verify their credentials through the SEC's Investment Adviser Public Disclosure (IAPD) database or the Financial Industry Regulatory Authority (FINRA) Broker-Check. You should also verify that your investment professional is appropriately registered under Oklahoma’s securities laws by contacting the Oklahoma Department of Securities at (405) 280.7700.
Investing without adequate research is akin to navigating in the dark. It can expose you to unnecessary risks and potential financial setbacks. The Oklahoma Department of Securities encourages all investors to take the time to investigate before investing, ensuring that you make informed decisions that align with your financial goals. Remember that knowledge is your best defense against financial uncertainty, and diligent research is a crucial step toward financial confidence and security.