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Added on 04/10/06
You're smart to ask questions and investigate because tech-savvy crooks often create Web sites that look like legitimate businesses. Start with the NASD, the brokerage industry's self-regulatory body. On its Web site, you'll find a summary of a...
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You're smart to ask questions and investigate because tech-savvy crooks often create Web sites that look like legitimate businesses. Start with the NASD, the brokerage industry's self-regulatory body. On its Web site, you'll find a summary of a company's Central Registration Depository (CRD) report, which contains disciplinary and regulatory actions, settlements and complaints. To bring up the information, type the firm's name into the NASD's BrokerCheck. You'll be able to see where the firm is licensed, how long it's been in business and whether any disciplinary actions have been taken, as well as other information. You also can search for information about individual brokers at the site, too. For more advice, see the NASD's How to Avoid Problems With Your Broker. Also see if the brokerage is insured by the Securities Investor Protection Corp. (SIPC), which insures securities in customer accounts up to $500,000, including $100,000 for cash claims, should the brokerage fail. It does... See less
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(SIPC), which insures securities in customer accounts up to $500,000, including $100,000 for cash claims, should the brokerage fail.