The North American Securities Administrators Association ("NASAA") cautioned investors against "making emotional decisions" in response to social media campaigns that may negatively affect their investment strategies.
NASAA recommended that investors:
- resist pressure from social media campaigns to buy or sell securities prior to conducting their own research;
- check the registration status of an investment promoter and the investment product prior to making a purchase;
- understand the elevated investment risks associated with trading on margin and options prior to making an investment decision; and
- keep long-term investment goals in mind prior to making a volatile investment.
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