Editor's note: This is a special alert from FINRA (formerly NASD 
). It has been reposted for TheStreet.com University readers.
Investors frequently get invited to free seminars that promise to educate them about investing strategies or managing money in retirement -- often with an expensive meal provided at no cost. But just because someone buys you breakfast, lunch or dinner doesn't mean you have to buy what they are saying -- or selling.
We are issuing this Alert because, in many cases, free-meal investment seminars are not solely about education. Their ultimate goals are to recruit new clients and sell products -- and while some pitches can be easy to swallow, the consequences can be hard to bear.
They're Popular
Free investment seminars are widespread. According to a recent survey by the FINRA Investor Education Foundation, four out of five investors age 60 and above (78%) got at least one invitation to a free investment seminar in the past three years -- and three out of five (nearly 60%) got six or more. Not all of these invitations are being tossed out: Nearly 25% of all those investors said that they went to at least one seminar in the three years. On the other hand, the good news is that relatively few older investors who do attend seminars actually buy anything -- only about 9%.
If you haven't been invited to a free-meal investment seminar yet, you likely will be. And if you decide to go, you need to be prepared.
What's Wrong With a Free Meal?
Potentially nothing. But problems can sometimes arise when the sponsor of the event or one of the lead speakers have something to sell, even though the invitation might state otherwise. Other times, problems can arise
after the seminar -- during follow-up contacts from the speaker or sponsor.
TSC Staff
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