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Investor Protection Guide: Investment Seminars ("Free Lunch")

Financial seminars are a marketing tool often used by broker-dealers and other entities to attract prospective clients. These seminars may be invitation-only or they may be advertised in local papers or on the internet. Financial seminars are often held at hotels or restaurants and may offer enticements such as free meals, books, or trips for attendees. At these seminars, participants are provided with a sales pitch and sales materials that describe possible investment strategies. These seminars sometimes offer unsuitable sales of securities for attendees.

Almost half of these investment seminars contain misleading or exaggerated information. Investors should keep in mind that most seminars are designed to sell a product, and remember that a well-presented presentation does not necessarily mean good deals. Investors should never substitute information received from these seminars with their own research or research from a independent party.

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