Berkeley CSUA MOTD:Entry 17159
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2025/05/24 [General] UID:1000 Activity:popular
5/24    

2000/1/4-5 [Industry/Startup, Finance/Investment] UID:17159 Activity:high
1/4     I want to do business with a financial services firm that's pretty
        new.  Is there a way to check if they're legit and won't take my
        money and run?  The company is not publically traded, it's a small
        LLC (limited liability company).  Anyway to check on such a firm?
        Thanks a lot.
        \_ Is it FDIC insured?
           \_ It's not FDIC insured.  I'm dealing with a hedge fund, and
              I'm not sure if the SEC is involved.
        \_ If they deal with securities, i.e. stocks and bonds, and they
           are not regulated by the SEC, then its NOT LEGIT
              \_ How do you come to know them? If you cant easily find
                 information about them, i'd be very wary.
                 Are they in Money or Fortune magazine?
                 Are you investing in the hedge fund or something else?
                 If the former, do they offer you such a big
                 "guaranteed" return that a more conventional (known)
                 firm cant help you?
                 Dont they give you a prospectus? brochure at least?
        \_ Check on the people who run it. Their history, background,
           experience.  Even check the BBB or the equivalent.
           Who licenses these firms? SEC?
        \_ Do a Dun and Bradstreet lookup.
2025/05/24 [General] UID:1000 Activity:popular
5/24    

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