Establishing A Solid Plan
The single most essential part of getting started in the investment process is to establish a solid investment plan. However, before you begin to establish a plan, you should read and understand the Ten Responsibilities of Investors listed below. Once you understand your role as an investor, you can now start to establish an investment plan. In other words, before you make any investment, you should evaluate your overall financial situation, formulate a sound investment strategy through goals and objectives, and set out to achieve those goals through periodic and consistent monitoring of your investment progress. To begin this process, it is important to first determine your overall financial situation through a determination of your individual net worth.
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Ten Responsibilities of Investors
from InvestmentCare.com
The following is a list of tens responsibilities that investors have to their financial representative and brokerage firm.
1All investors must understand and accept the fact that there are risks of monetary loss associated with every investment.
2Investors are responsible for reading all sales literature, prospectuses, offering memorandum, and disclosure information before making an investment.
3Investors are responsible for reading all contracts and agreements entered into regarding their investment accounts. This includes, but is not limited to, new account agreements, margin agreements, options agreements, and subscription agreements. The investor is responsible for reading, understanding and agreeing to the terms of any agreement that is signed.
4Investors are responsible for reviewing their trade confirmations, portfolio and account statements on a regular basis to ensure the accuracy of the transactions and to monitor the activity in the account.
5Investors are responsible for providing accurate information regarding their financial status, investment objectives, and risk tolerance in order to ensure that the broker can provide appropriate advice and recommendations.
6Investors are responsible for notifying their investment professional when there is a significant change in their financial status, investment objectives, and risk tolerance.
7Investors should carefully consider the validity and source of all research, investment advice and sales literature
8Investors should have the available cash or margin buying power to pay for transactions by settlement date or to cover any margin calls. Investors also have the responsibility to understand all of the rules and regulations regarding margin accounts.
9Investors have the responsibility to promptly bring all problems, questions and disputes to their investment professional.
10Investors using electronic or online trading systems assume the risks and responsibilities associated with their trading activity
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