Boiler Room Tips

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By Alice Ross

Published: June 6 2011 22:59 | Last updated: June 6 2011 22:59

Investment products described as “guaranteed”, “protected” or “secure” may have to carry an explanation stating exactly what these terms mean, in the latest warning from the Financial Services Authority that financial companies are not properly advertising risk to consumers.

So-called structured products, which offer people exposure to the stock market with some level of protection, were being promoted “without any clear and adequate justification for the descriptions used”, the regulator said in a quarterly consultation paper on Monday. It has proposed introducing guidelines that would force financial services companies to explain the use of terms such as “guaranteed” in advertisements or fact sheets.

EDITOR’S CHOICE

Analysis: Finance – Shadow boxes – Feb-02

Tony Jackson: Cat-and-mouse game – Jan-30

Lex: Financial Crisis Inquiry Commission – Jan-27

Goldman president warns on bank rules – Jan-26

Reforms need to nurtur...

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Stocks posted a shard drop recently, with Dow Jones Industrial Average coming to a 4.3% fall while the Nasdaq also suffered a decrease of 5%.



At closing time, there were couple of locations left to be able to conceal. Silver, gold, precious metal, crude and produces from Treasuries all fell dramatically since traders seemed regarding security and were met by absolutely nothing aside from dropping prices. Over the actual final ten investing nights, stocks and shares lost over 10%, the traditional classification of a market alteration.



Today’s selling began inside Europe and also found heavy steam since American traders, already restless within the wake of the financial debt threshold ordeal, all of a sudden favored cash over all other assets. The particular selling started abroad, however we have much more as compared to our own share of issues in the United States also.



There is a mounting awareness amongst even the most upbeat traders that the US will be getting into a brand new recession — a feared “double-dip”. Adding to the discomfort will be the sense that the authorities, as well as Federal Reserve tend to be out of each suggestions and methods to be able to stimulate the market. Corporate America is on record amounts money, however it is actually refusing to create new opportunities with so small end demand for its products. Companies and consumers are usually amassing cash, wh...

Stocks posted a shard drop recently, with Dow Jones Industrial Average coming to a 4.3% fall while the Nasdaq also suffered a decrease of 5%.



At closing time, there were couple of locations left to be able to conceal. Silver, gold, precious metal, crude and produces from Treasuries all fell dramatically since traders seemed regarding security and were met by absolutely nothing aside from dropping prices. Over the actual final ten investing nights, stocks and shares lost over 10%, the traditional classification of a market alteration.



Today’s selling began inside Europe and also found heavy steam since American traders, already restless within the wake of the financial debt threshold ordeal, all of a sudden favored cash over all other assets. The particular selling started abroad, however we have much more as compared to our own share of issues in the United States also.



There is a mounting awareness amongst even the most upbeat traders that the US will be getting into a brand new recession — a feared “double-dip”. Adding to the discomfort will be the sense that the authorities, as well as Federal Reserve tend to be out of each suggestions and methods to be able to stimulate the market. Corporate America is on record amounts money, however it is actually refusing to create new opportunities with so small end demand for its products. Companies and consumers are usually amassing cash, wh...