Glossary

A private placement is a group of securities not sold through a public offering. The private offering is only offered to a small group of investors, rather than…

A Ponzi scheme is a fraudulent investment scheme wherein the operator uses the investment funds from a new investor to pay returns to investors already in the scheme.…

Overconcentration can occur when your investment portfolio contains a large portion of the same type of investment, asset class, or market sector. Typically, a diversified portfolio helps investors weather…

Leveraged Exchange Traded Funds (“ETFs”) are investments that seek to deliver multiples of the performance of the index or benchmark they track.  Examples are ProShares’ Ultra S&P500, which…

FINRA is the Financial Industry Regulatory Authority, a self-regulatory organization charged with regulating the securities industry.  It is the successor to the National Association of Securities Dealers, Inc.…

Churning is excessive trading in a customer’s investment account in order to generate additional commissions for the broker.