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Recovering Losses caused by Investment Misconduct

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3 Things to Think About Before Putting Money in a Pre-IPO Investment

Many savvy investors try to maximize their investment returns by finding a good investment before it becomes popular and the price of the investment goes up. However, your experienced Columbus investment fraud attorney wants you to know that there are significant risks to pre-IPO investing, which investors should consider before making a financial commitment.
Why Pre-IPO Investing is Risky
Pre-IPO investments are risky because:
  1. The Securities are Not Yet Registered and May Never Be Registered. Unregistered securities can be difficult to sell if you decide you no longer want the investment. Additionally, there is no guarantee that a pre-IPO security will ever go public. If the IPO is never completed, then you may not be able to recover the money that you invested.
  2. The Investment May Be Illegal. In order to be a legal securities investment, the company must either register with the Securities and Exchange Commission (SEC) or qualify for an exemption. If it does not register or qualify for an exemption, then the securities investment is illegal.
  3. There May Be Significant Restrictions on the Investment. Investments that are purchased privately, such as pre-IPO investments, may carry significant restrictions, such as limitations on how you can sell your investment.
What to Do if You’ve Been the Victim of a Pre-IPO Investment Scam
A Columbus investment fraud attorney may be able to help you recover damages if you lost money in a pre-IPO investment.
To learn more about your rights and your potential damages, please contact the Law Firm of Meyer Wilson. We are the only Ohio law firm exclusively dedicated to representing investors in individual and class-action claims.
Our experienced Columbus investment fraud lawyers welcome your phone calls at 614-224-6000 or toll-free at 1-866-827 and would be pleased to provide you with a free consultation about your pre-IPO investment loss.
Additionally, we invite you to read our FREE book, Five Signs of Investment Fraud... And What to Do if it's Happened to You to learn more about investment fraud and what you should do if you think you’ve been a victim.