FINRA Campaign Urges New Investors to Take Key Steps Before Trading
September 04 2024 - 10:44AM
Business Wire
‘Get Your Head in the Trade’ by Setting Goals,
Knowing Your Risk Tolerance, and Understanding How Investments Can
Make or Lose Money
FINRA has launched an online advertising campaign, Get Your Head
in the Trade, encouraging new investors to understand investment
risks and rewards as well as their own financial goals and risk
tolerance before making an investment decision.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240904402192/en/
One of several social media posts in the
campaign (Photo: Business Wire)
“Millions of investors enter the market each year, about half of
them are self-directed, and many are using social media as a
primary source of information. FINRA is expanding our outreach to
meet investors where they are and provide resources to help them
make informed investment decisions,” said Marcia Asquith, Executive
Vice President, Board and External Relations at FINRA.
The campaign will run for three months on various platforms,
including Instagram, YouTube, Spotify and Yahoo! Finance. The ads
link to a new web page, FINRA.org/tradesmart, designed to equip new
investors with knowledge, skills and tools.
There are two video ads in the campaign:
- "Meghan Gets a Stock Alert”
- “Meghan Checks an AI Pick”
According to data from the FINRA Investor Education Foundation’s
National Financial Capability Study, investors who are new, younger
or use social media for investing information are more likely than
more experienced investors to engage in riskier behaviors.
Specifically:
- Over half of new investors invest in crypto assets, nearly
one-third trade options, and about one-in-five purchase securities
on margin.
- Holding microcap or penny stocks in one’s investment portfolio
was associated with using social media for investment
information.
- About 26 percent of social media users traded more than 10
times a month compared with about 17 percent of non-social media
users.
The campaign is the latest in a series of FINRA initiatives
begun in 2021 recognizing the growing number of new, self-directed
investors in the market. These efforts include a new Instagram
channel; an ongoing series of discussions at college campuses
around the screening of Optimist’s award-winning documentary, This
is Not Financial Advice and other initiatives to be announced.
About FINRA
FINRA is a not-for-profit organization dedicated to investor
protection and market integrity. FINRA regulates one critical part
of the securities industry—member brokerage firms doing business in
the U.S. FINRA, overseen by the SEC, writes rules, examines for and
enforces compliance with FINRA rules and federal securities laws,
registers broker-dealer personnel and offers them education and
training, and informs the investing public. In addition, FINRA
provides surveillance and other regulatory services for equities
and options markets, as well as trade reporting and other industry
utilities. FINRA also administers a dispute resolution forum for
investors and brokerage firms and their registered employees. For
more information, visit www.finra.org.
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version on businesswire.com: https://www.businesswire.com/news/home/20240904402192/en/
media@finra.org