Have You Received Any Unsolicited Investment Phone Calls?
When is it okay to invest based on a cold-call from a stockbroker? Spoiler
A cold-call is an unsolicited phone call from a person selling investments
with whom you don’t already have a relationship. Often times, it’s
a stockbroker (or someone posing as a broker) who is touting the next
hot stock and wants you to buy it. Typically, the caller presses that
the investment or hot stock is an act-now opportunity that will be missed
if you wait. Repeated, and more aggressive, calls are common. The investments
are often low-priced "penny" stocks, though higher priced stocks
and other types of investments may also be pitched. Investors who purchase
these investments in response to cold calls often find that the sales
pitches are fraudulent and the investment they bought are virtually worthless.
It is very unusual for any legitimate investment opportunity to come to
you through an unsolicited investment phone call. I have been representing
individuals who have been victims of investment fraud for a long time
and my strong recommendation is to never say yes to stock purchases from
a cold caller, even if the claims sound reasonable. The best fraud pitches
are designed to sound believable, and counter every possible doubt or
opposition. Don't feel guilty about hanging up. Not answering at all,
or putting down the phone, are generally the best and safest responses
to a cold caller aggressively pitching low-priced stocks or other investment
If you’re looking for quality investment recommendations, you should
do research about financial advisors in your area who are willing to meet
and develop a relationship with you, before taking their recommendations.
Our website has several articles and videos to browse about how and why
to do research on your financial advisor before you commit to investing.