Investor section for Securities


The Internet has become an inexpensive and easy way for individuals and businesses to raise money for their activities. Congress recently passed the JOBS Act, which directs the Securities and Exchange Commission (SEC) to create rules exempting crowdfunding from the securities registration laws. Once implemented, these rules will remove restrictions on start-up companies seeking investors over the Internet. Investors should be on the lookout for unscrupulous issuers and intermediaries who may attempt to engage in crowdfunding before the rules are written or misuse crowdfunding to steal from investors through false and misleading representations.

Before you invest, investigate


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Investors Beware

Becoming an informed investor is the best defense against investment scams.

Here is some useful investor information on two popular types of investment fraud. You should be on the lookout for these when investing.

Making the Right Decisions

Opening an Account

    • Be honest when filling out a new account form.  Your broker or representative cannot recommend investments to you unless he or she understands your complete financial picture and the level of risk you are willing to accept.
      • Do not sign the form until it is completed, the information is accurate and you understand and are willing to accept the terms and conditions it imposes upon you.  Take your time.  Ask questions and read the fine print.

          Commonly Used Designations

          Explanations of Common Investment Professional Designations


          Certified Financial Planner, CFP:

          Risky Investments

          Both legitimate brokers and con artists offer many investment opportunities.  A legitimate investment can offer excellent returns, while a deal with a con artist is guaranteed to result in financial loss.  Con artists typically use the following techniques:

          Educational Opportunities

          The goal of the Division's Investor Education Program is to promote financial literacy for Vermonters of all ages.   If you need further information or would like to host an investor education workshop or seminar for your civic group or classroom, please contact program coordinator Bill Carrigan at 802-828-4858 (toll-free: 877-550-3907), or e-mail:

          Investing Basics

          Our Investing Basics area is designed to provide you with educational material, resources and tools to help you become an informed investor. Please visit NASAA and FINRA to understand your investor rights, information and tools to aide you before you invest, what you should know after you make an investment, and how to detect and avoid risky investments.



          Choosing an Investment Professional

          There are more than a thousand brokerage firms available to sell you securities.  Some may have offices in Vermont, while others may conduct their business from outside the state via mail, telephone or by computer.  No matter where they are located, Vermont law requires all firms and their salespersons to be registered with the Vermont Securities Division.



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