The Consumer Action Handbook

how to contact CFTC and page
144 for NFA.
Securities
Before making a securities
investment in stocks, bonds or
mutual funds, you should get
written financial information
such as a prospectus or annual
report. Select a broker or investment
adviser who understands
your financial objectives.
Interview two or three to compare
experience, education and
professional background. Call
the National Association of
Securities Dealers, Inc.
(NASD) toll-free on 1-800-289-
9999 to find out about the disciplinary
history of the broker.
Call your state securities
regulator (see page 100) to see
if the investment and the salesperson
are registered in your
state, and to obtain any disciplinary
information.
● Understand how the broker
or investment adviser
is paid.What fees will you
pay to purchase, sell or
maintain the account?
10
● If you have a problem
with your broker or your
account, talk with the firm’s
manager. If you can’t
resolve the problem, contact
the U.S. Securities and
Exchange Commission (see
page 124) or your state
securities regulator (see
page 100).
● Read magazines like
Money, Kiplinger’s Personal
Finance and Fortune for
investment advice.
● Visit the numerous web
sites providing personal
finance information. Good
gateways to these web
sites include:
www.pueblo.gsa.gov and
www.consumerworld.org.
Click on money.
Day Trading
Unlike longer term investments
for college or retirement, day
trading seeks profits based on
short-term fluctuations in the
prices of stocks. You gamble on
whether the price of a stock will
rise or fall. Unless you are
extremely knowledgeable
about stocks and how the
stock market works, you
should not engage in day
trading. For more information,
call the U.S. Securities and
Exchange Commission (see
page 124) or your state securities
regulator (see page 100).
Utilities
Electricity
Most consumers get their electric
service from a local private
or public utility company or
from a cooperative. The electric
utility industry is restructuring,
however, and in several states
consumers will be able to select
an electric supplier. Contact
your state utility commission
(page 105) for information about
your own state. Ask:
● Has our state restructured
the electric industry?
● What protection do I have
against slamming (unauthorized
switching of
providers)?
● Do you have consumer
information to help me
decide which service to purchase?
● Do you license sellers of
electricity?
● Do you have a list of companies
that can do business
in our state?
● Where do I complain about
unfair marketing, sales, and
service practices?
If you have a choice in electric
suppliers, ask:
● How much will it cost? How
long can I depend on this
rate?
● Who do I call if I have a
problem with service?
● What is your experience in
providing reliable service?
● Can I have a sample of a bill
I might receive if I purchase
electricity from your company?
● What are the terms and
conditions of service?
● Do you have a local customer
service office?
● Do you have a privacy protection
policy?
Natural Gas
Call your state utility commission
(page 105) for a list of
licensed suppliers. Ask companies:
● Does your price include distribution
and sales tax, and
are there any other fees I
will be charged that are not
included in this price?
● What are the terms and
conditions of the agreement?
● What information do I have
to provide you to enroll me?
Do you have a privacy policy?
● Are there fees if I cancel my
agreement before it is up?
What are they?
● What are the cancellation
terms?
● What is the length of the
agreement, and what happens
when it is over?
● Do you have a local customer
service office?
Water
The majority of consumers rely
on local utilities to produce a
safe and ample supply of water.
Your local water agency is