Indiana MoneyWise October 2014 | Page 10

QUIZ: Are you at RISK?

Knowing how they operate can protect you, but it is equally important that you understand yourself and your level of investment knowledge. Take this quiz to see if you’re vulnerable.

1. Do you need to investigate the seller before purchasing the investment?

No need. I’ve know the seller for a long time and he promised me he was registered.

Yes! You should always investigate the seller to make sure they are registered.

2. Should an investment with the promise of 20% returns raise a red flag?

No, that sounds like a great deal.

Yes, if it sounds too good to be true, it is!

3. Should you invest with someone based solely upon the recommendation of a friend or family member?

Sure. If they trust the seller, then that is good enough for me.

No, you should always do your own research.

4. Would you be more likely to invest with a broker if other investors showed signs of great wealth?

Absolutely! That’s a good sign it is legitimate.

No, just because they are making money doesn’t mean I will.

5. Would you listen to an investment pitch if something free was offered in return?

Yes, there can’t be any harm in doing that.

Maybe, but I would be cautious in doing so.

Fraudsters can strike anywhere at any time.

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