An Alternative To Summer Fiction

Money and Investing

(NC) - As the weather becomes warm many people turn their mind to pleasure reading on a sunny beach. There are so many great novels to choose from that very few of us would reach for a prospectus, but this document is invaluable to making informed investment decisions.

The prospectus is a legal document that sets out the full, true and plain facts you need to know about a security. It is required by securities regulators but should not be considered a 'seal of approval' that securities are a safe investment or are suitable for you.

You and your adviser should review the prospectus carefully. It provides important information about a company or mutual fund, including information on products, management, strategic planning, and risks. Reading a prospectus is the first step to becoming an informed investor.

When reading a prospectus consider the following questions:

• Is the issuer well established or is it new with little or no history?

• What business is the company in? Who are its competitors?

• Has the issuer been profitable in the past? Has its financial performance been improving or declining in recent years?

• Does it have substantial debt?

• Who are the directors and officers? Do they have established track records of success?

• What are the major risk factors that could affect the issuer's performance in the future?

For more information, order a free Prospectus brochure from the Ontario Securities Commission at (416)-593-8314 or toll free at 1-877-785-1555. Additional resources are available on-line on the Investor Education Fund website: http://www.investorED.ca

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