Know Your Risk Tolerance and Suitability
Before you make any investment decision, you need to consider two factors that should influence all of your choices--your risk tolerance and what investments are suitable for you.
Risk can be simply defined as the possibility of suffering a loss. The higher the return on your investment, the greater the risk you are taking. One way to minimize your risk of financial loss is through diversification, which can be summed with the old adage, "Don't put all your eggs in one basket."
Suitability means that the investment is in line with your investment objectives and financial situation. You should buy investments that are appropriate for you at your stage in life. Also, consider how soon you need access to the money you will be investing. The sooner you need access to the money, the more liquid (easily converted to cash) the investment should be.
Read more about risk and suitability before you decide on any investment. Complete a investor risk survey then compare to the score card to determine your risk tolerance.
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Know Your Risk and Suitability
Choosing and Monitoring an Investment Professional
Guidelines for Online Investors
Raising Capital in Arizona
Tips on Reading a Prospectus