News

With interest rates on the rise, more investors may be considering an investment in bonds or bond funds, and in researching alternatives or talking to a financial adviser, may have come across bond credit ratings.  Credit ratings usually appear in the form of alphabetical letter grades (for example, ‘AAA’ and ‘BBB’) and are an estimate of the relative level of credit risk of a bond, company or government.  Credit ratings are issued by third parties and are not an assessment by the issuer of the bond or by securities regulators.

Credit ratings can be useful when evaluating an investment.  But when considering credit ratings, you should understand their limitations.  You should not base your investment decision solely on a credit rating or treat a credit rating as if it were investment advice.
 

In recognition of World Elder Abuse Awareness Day on June 15, the North Dakota Securities Department reminds financial professionals and the public throughout North Dakota to be on the lookout for signs of elder financial abuse.

Governor Burgum Issues Proclamation Recognizing World Elder Abuse Awareness Day on June 15.

Many investors are becoming more conscious of whether a company in which they are investing has considered environmental, social and governance (ESG) factors. This is resulting in an investor-driven push to get corporate managers to pay greater attention to ESG issues. Some corporations are responding by altering their management philosophies and business plans.

Don't get swept away by a romance scam.

Dating apps and social media platforms may be a popular way to meet new people, but be cautious if someone turns an online romance into an opportunity to solicit an investment or asks to borrow money. Scammers are increasingly posing as potential romantic partners to lure people into fraudulent investment schemes. This alert discusses common tactics fraudsters use in investment-related romance scams and gives you steps to take to protect yourself from these schemes.

In our digitally connected world, some investors turn to online chatrooms and social media platforms for information about investing or specific investment opportunities.  And with today’s trading technology, it’s easy to go from zero to invested in a matter of minutes.  Phone apps can turn inexperienced investors into day traders, and online investment chat forums make it easy to use these sources for investment advice rather than relying on the services of a registered investment professional. While ever-evolving financial technology innovation makes investing more accessible to greater numbers of people, investors must understand the risks created when financial innovation and social media intersect. 

Crypto assets, including cryptocurrencies, stablecoins, tokens, and other digital assets have been of increasing interest to individual investors over the last few years.  This Investor Advisory highlights the risks that may be involved in a new financial product related to crypto assets—an interest-bearing account for crypto asset holdings. 

The relationship you have with your investment professional is a key element to meeting your long-term financial goals.

If your stockbroker or investment adviser representative leaves his or her employer, you should make sure that you understand how and why it happened. It could be as simple as a move to another city or retirement, but there could be other reasons too. It is critical to find out what happened before deciding who will help you with your investments going forward. After all, it’s your money and your financial future.

The North Dakota Securities Department has released its annual list of top investor threats and urges caution before purchasing popular and volatile unregulated investments – especially those involving cryptocurrency and digital assets.  Along with the list of top investor threats, the Department also provides guidance for investors, including steps to take to protect against fraud in the new year. 

As part of its ongoing effort to raise investor awareness, the North Dakota Securities Department has issued an investor advisory discussing Decentralized Finance (DeFi), a relatively new blockchain-based set of financial products and services.