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The Existence and Identity of the Underwriter – Has the company retained an investment banking firm to underwrite the offering? If so, which firm? Contact your state securities regulator to find out whether the firm has a history of complaints or fraud.
The Identity and Disciplinary History of the Promoter – How did you find out about the offering? If you heard about it from a stranger or saw a general advertisement, exercise extreme caution. Unscrupulous promoters typically try to lure in as many unwitting investors as possible to maximize their returns. Be sure to check out the disciplinary history of any promoters with your state securities regulator.
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