Guidelines for Online Investors
Due to the creation of online brokerage services and widespread public access to the Internet, individual investors are now able to buy, sell, and manage their own investments online—without personalized investment guidance from a broker or an investment adviser.
Some investors use the Internet to trade frequently with the hope of profiting from a rapidly changing market. This strategy can be risky. Market volatility, inaccurate information about anticipated changes in prices, and delays in the execution of online trades may lead to financial losses. Investors can also use the Internet to select and manage investments that meet long-term goals. Some investors conduct their own research and purchase all of their investments online without any professional guidance. Other investors consult a broker or an investment adviser for guidance in developing a plan to select suitable investments then use the Internet as an alternative method of placing orders and tracking performance.
Before buying investments over the Internet, take a few moments to read these guidelines for online investors. Also, for more detailed information about online investing, visit NASAA's online resource center, www.investingonline.org.