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