Why Should You Be Extremely Cautious About Private Placement Securities?

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Private placement securities are bonds, stocks or other instruments issued by a corporation to outside investors. These investments tend to be very risky partly because the issuers are usually under no obligation to register them with the Securities and Exchange Commission. The problem arises when investors are not told of the dangers looming and do not know enough about the corporation, the broker or other intermediaries' records and credentials to make an informed decision.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Doron Eghbali, Law Advocate Group, LLP | Attorney Advertising

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