The SEC’s Office of Investor Education and Advocacy and

Investor Assistance (800) 732-0330  www.investor.gov
Investor Alert 
Binary options and Fraud  
The SEC’s Office of Investor Education and Advocacy and 
the Commodity Futures Trading Commission’s Office of 
Consumer Outreach (CFTC) are issuing this Investor Alert 
to warn investors about fraudulent promotion schemes 
involving binary options and binary options trading  
platforms. These schemes allegedly involve, among other 
things, the refusal to credit customer accounts or reimburse 
funds to customers, identity theft, and manipulation of 
software to generate losing trades.
Binary Options
Binary options differ from more conventional options 
in significant ways. A binary option is a type of options 
contract in which the payout will depend entirely on 
the outcome of a yes/no proposition.
The yes/no proposition typically relates to whether 
the price of a particular asset that underlies the binary 
option will rise above or fall below a specified amount. 
For example, the yes/no proposition connected to the 
binary option might be something as straightforward 
as whether the stock price of XYZ company will be 
above $9.36 per share at 2:30 pm on a particular day, 
or whether the price of silver will be above $33.40 per 
ounce at 11:17 am on a particular day. once the option 
holder acquires a binary option, there is no further 
decision for the holder to make as to whether or not 
to exercise the binary option because binary options 
exercise automatically. Unlike other types of options, 
a binary option does not give the holder the right to 
purchase or sell the underlying asset. When the binary 
option expires, the option holder will receive either a 
pre-determined amount of cash or nothing at all. Given 
the all-or-nothing payout structure, binary options are 
sometimes referred to as “all-or-nothing options” or 
“fixed-return options.”
Binary Options Trading Platforms
some binary options are listed on registered exchanges 
or traded on a designated contract market that are  
subject to oversight by United states regulators such  
as the seC or CFtC, respectively, but this is only a 
portion of the binary options market. Much of the 
binary options market operates through Internet-based 
trading platforms that are not necessarily complying 
with applicable U.s. regulatory requirements. The 
number of Internet-based trading platforms that offer 
the opportunity to purchase and trade binary options 
has surged in recent years. The increase in the number 
of these platforms has resulted in an increase in the 
number of complaints about fraudulent promotion 
schemes involving binary options trading platforms.
Much  of  the  binary  options  market  operates  
through  Internet-based  trading  platforms  that  
are  not  necessarily  complying  with  applicable  
U.s. regulatory requirements and may be engag-
ing in illegal activity.

Investor Assistance (800) 732-0330  www.investor.gov
typically, a binary options Internet-based trading  
platform will ask a customer to deposit a sum of money 
to buy a binary option call or put contract. For example, 
a customer may be asked to pay $50 for a binary option 
contract that promises a 50% return if the stock price  
of XYZ company is above $5 per share when the  
option expires. 
If the outcome of the yes/no proposition (in this case, 
that the share price of XYZ company will be above 
$5 per share at the specified time) is satisfied and the 
customer is entitled to receive the promised return, the 
binary option is said to expire “in the money.” If, however, 
the outcome of the yes/no proposition is not satisfied, 
the binary option is said to expire “out of the money,”  
and the customer may lose the entire deposited sum. 
There are variations of binary option contracts in which  
a binary option that expires out of the money may entitle 
the customer to receive a refund of some small portion of 
the deposit—for example, 5%—but that is not typically 
the case.
In fact, some binary options Internet-based trading plat-
forms may overstate the average return on inv
estment by 
advertising a higher average return on investment than a 
customer should expect, given the payout structure. For 
instance, in the example above, assuming a 50/50 chance 
of winning, the payout structure has been designed in 
such a way that the expected return on investment is 
actually negative, resulting in a net loss to the customer. 
This is because the consequence if the option expires out 
of the money (approximately a 100% loss) significantly 
outweighs the payout if the option expires in the money 
(approximately a 50% gain). In other words, in the  
example above, an investor could expect, on average,  
to lose money.
Investor Complaints Relating to  
Platforms
Fraudulent Binary Options Trading  
The seC and CFtC have received numerous complaints 
of fraud associated with websites that offer an opportunity 
to buy or trade binary options through Internet-based 
trading platforms. The complaints fall into at least three 
categories: refusal to credit customer accounts or reimburse 
funds to customers; identity theft; and manipulation of 
software to generate losing trades.
The first category of alleged fraud involves the refusal of 
certain Internet-based binary options trading platforms 
to credit customer accounts or reimburse funds after 
accepting customer money. These complaints typically 
involve customers who have deposited money into 
their binary options trading account and who are then 
encouraged by “brokers” over the telephone to deposit 
additional funds into the customer account. When  
customers later attempt to withdraw their original  
deposit or the return they have been promised, the 
trading platforms allegedly cancel customers’ withdrawal 
requests, refuse to credit their accounts, or ignore their 
telephone calls and emails.
The second category of alleged fraud involves identity 
theft. For example, some complaints allege that certain 
Internet-based binary options trading platforms may 
be collecting customer information such as credit card 
and driver’s license data for unspecified uses. If a binary 
options Internet-based trading platform requests  
photocopies of your credit card, driver’s license, or 
other personal data, do not provide the information.
The third category of alleged fraud involves the  
manipulation of the binary options trading software  
to generate losing trades. These complaints allege that 
the I
nternet-based binary options trading platforms 
2

Investor Assistance (800) 732-0330  www.investor.gov
3
manipulate the trading software to distort binary options 
prices and payouts. For example, when a customer’s 
trade is “winning,” the countdown to expiration is  
extended arbitrarily until the trade becomes a loss.
Unregistered Transactions, Operations, 
Broker-Dealers, or Trading Exchanges; 
Illegal Options Transactions
In addition to ongoing fraudulent activity, many binary 
options trading platforms may be operating in violation 
of other applicable laws and regulations, including certain 
registration and regulatory requirements of the SEC and 
CFTC, as described below.
Certain Registration and Regulatory  
Requirements of the SEC
For example, some binary options may be securities. 
Under the federal securities laws, a company may not 
lawfully offer or sell securities unless the offer and sale 
have been registered with the SEC or an exemption from 
such registration applies. For example, if the terms of 
a binary option contract provide for a specified return 
based on the price of a company’s securities, the binary 
option contract is a security and may not be offered or 
sold without registration, unless an exemption from 
registration is available. If there is no registration or 
exemption, then the offer or sale of the binary option 
to you would be illegal.
If any of the products offered by binary options trading 
platforms are security-based swaps, additional require-
ments will apply.
In addition, some binary options trading platforms 
may be operating as unregistered broker-dealers. A 
person who engages in the business of effecting securi-
ties transactions for the accounts of others in the U.S. 
generally must register with the SEC as a broker-dealer. 
If a binary options trading platform is offering to buy 
or sell securities, effecting transactions in securities, 
and/or receiving transaction-based compensation (such 
as commissions), it likely should be registered with  
the SEC. To determine whether a particular trading 
platform is registered with the SEC as a broker-dealer, 
visit the FINRA BrokerCheck website (www.finra.org/
investors/toolscalculators/brokercheck/).
Some binary options trading platforms may also be 
operating as unregistered securities exchanges. This 
would be the case if they matched orders in securities 
of multiple buyers and sellers using established non-
discretionary methods. However, there are cases where 
a registered broker-dealer with a trading system or 
platform may legitimately have no obligation to register 
as an exchange.
Certain Registration and Regulatory  
Requirements of the CFTC
It is illegal for entities to solicit, accept offers, offer 
to or enter into commodity options transactions (for 
example, foreign currencies, metals such as gold and 
silver, and agricultural products such as wheat or corn) 
with U.S. citizens, unless those options transactions are 
conducted on a designated contract market, an exempt 
board of trade, or a bona fide foreign board of trade, 
or are conducted with U.S. customers who have a net 
worth that exceeds $5 million.
To see the most recent list of exchanges that are designated 
as contract markets, check the CFTC website. There  
currently are only three designated contract markets 
offering binary options in the U.S.: Cantor Exchange 
LP; Chicago Mercantile Exchange, Inc.; and the North 
American Derivatives Exchange, Inc. All other entities 
offering binary options that are commodity options 
transactions are doing so illegally.

Investor Assistance (800) 732-0330  www.investor.gov
4
Further, entities that solicit or accept orders for  
commodity options transactions and accept, among 
other things, money to margin, guarantee, or secure 
the commodity options transactions must register as a 
Futures Commission Merchant. Entities that act as 
the counterparty (that is, they take the other side of the 
transaction from the customer as opposed to matching  
orders) for foreign currency options transactions for 
customers with a net worth of less than $5 million 
must register as a Retail Foreign Exchange Dealer.
■
  
■
  
■
  
■
  
Because of their lack of compliance with applicable 
laws, if you purchase binary options offered by 
persons or entities that are not registered with or 
subject to the oversight of a U.S. regulator, you 
may not have the full benefit of the safeguards 
of the federal securities and commodities laws 
that have been put in place to protect investors, 
as some safeguards and remedies are available 
only in the context of registered offerings. In 
addition, individual investors may not be able 
to pursue, on their own, some remedies that are 
available for unregistered offerings.
Final Words
■
  Remember—much of the binary options market 
operates through Internet-based trading platforms 
that are not necessarily complying with applicable 
U.S. regulatory requirements and may be engaging 
in illegal activity.
■
  Do not invest in something that you do not under-
stand. If you cannot explain the investment oppor-
tunity in a few words and in an understandable way, 
you may need to reconsider the potential investment.
■
  Before investing in binary options, you should take 
the following precautions:
Check to see if the binary options trading 
platform has registered the offer and sale of the 
product with the SEC. R
egistration provides 
investors access to key information about the 
terms of the product being offered. You can 
use EDGAR (www.sec.gov/edgar/searchedgar/
webusers.htm) to determine whether an issuer 
has registered the offer and sale of a particular 
product with the SEC.
Check to see if the binary options trading 
platform itself is registered as an exchange. 
To 
determine whether the platform is registered as 
an exchange, you can check the SEC website 
regarding Exchanges at www.sec.gov/divisions/
marketreg/mrexchanges.shtml.
Check to see if the binary options trading  
platform is a designated contract market. To 
determine whether an entity is a designated 
contract mar
ket, you can check the CFTC  
website at http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic
=TradingOrganizations&implicit=true&type=DC
M&CustomColumnDisplay=TTTTTTTT.
Finally, before investing, check out the registration 
status and background of any firm or financial 
professional you ar
e considering dealing with at 
FINRA BrokerCheck (www.finra.org/investors/tools 
calculators/brokercheck/) and BASIC Search (www.
nfa.futures.org/basicnet), the National Futures Asso-
ciation Background Affiliation Status Information 
Center. If you cannot verify that they are registered, 
don’t trade with them, don’t give them any money, 
and don’t share your personal information with them.

EDGAR (www.sec.gov/edgar/searchedgar/webusers.htm)
FINRA BrokerCheck (www.finra.org/investors/toolscalculators/brokercheck/)
BASIC Search (www.nfa.futures.org/basicnet)
SEC Publication: Ask Questions (www.sec.gov/investor/pubs/sec-questions-investors-should-ask.pdf)
SEC Investor Alert: Social Media and Investing—Avoiding Fraud (www.sec.gov/investor/alerts/socialmedia 
andfraud.pdf)
CFTC Consumer Protection (www.CFTC.gov/consumer protection)
International Organization of Securities Commissions (IOSCO) (www.iosco.org/lists/index.cfm?section=general)
Related Information
The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither 
a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application 
of a particular law or rule, please consult with an attorney who specializes in securities law.
SEC Pub. No. 148 (6/13)

Investor Assistance (800) 732-0330  www.investor.gov

Investor Alert 
Binary options and Fraud  
The SEC’s Office of Investor Education and Advocacy and 
the Commodity Futures Trading Commission’s Office of 
Consumer Outreach (CFTC) are issuing this Investor Alert 
to warn investors about fraudulent promotion schemes 
involving binary options and binary options trading  
platforms. These schemes allegedly involve, among other 
things, the refusal to credit customer accounts or reimburse 
funds to customers, identity theft, and manipulation of 
software to generate losing trades.

Binary Options
Binary options differ from more conventional options 
in significant ways. A binary option is a type of options 
contract in which the payout will depend entirely on 
the outcome of a yes/no proposition.

The yes/no proposition typically relates to whether 
the price of a particular asset that underlies the binary 
option will rise above or fall below a specified amount. 
For example, the yes/no proposition connected to the 
binary option might be something as straightforward 
as whether the stock price of XYZ company will be 
above $9.36 per share at 2:30 pm on a particular day, 
or whether the price of silver will be above $33.40 per 
ounce at 11:17 am on a particular day. once the option 
holder acquires a binary option, there is no further 
decision for the holder to make as to whether or not 
to exercise the binary option because binary options 
exercise automatically. Unlike other types of options, 
a binary option does not give the holder the right to 

purchase or sell the underlying asset. When the binary 
option expires, the option holder will receive either a 
pre-determined amount of cash or nothing at all. Given 
the all-or-nothing payout structure, binary options are 
sometimes referred to as “all-or-nothing options” or 
“fixed-return options.”

Binary Options Trading Platforms
some binary options are listed on registered exchanges 
or traded on a designated contract market that are  
subject to oversight by United states regulators such  
as the seC or CFtC, respectively, but this is only a 
portion of the binary options market. Much of the 
binary options market operates through Internet-based 
trading platforms that are not necessarily complying 
with applicable U.s. regulatory requirements. The 
number of Internet-based trading platforms that offer 
the opportunity to purchase and trade binary options 
has surged in recent years. The increase in the number 
of these platforms has resulted in an increase in the 
number of complaints about fraudulent promotion 
schemes involving binary options trading platforms.

Much of the binary options market operates 
through Internet-based trading platforms that 
are not necessarily complying with applicable 
U.s. regulatory requirements and may be engag-
ing in illegal activity.

www.investor.gov


Investor Assistance (800) 732-0330  www.investor.gov

typically, a binary options Internet-based trading  
platform will ask a customer to deposit a sum of money 
to buy a binary option call or put contract. For example, 
a customer may be asked to pay $50 for a binary option 
contract that promises a 50% return if the stock price  
of XYZ company is above $5 per share when the  
option expires. 

If the outcome of the yes/no proposition (in this case, 
that the share price of XYZ company will be above 
$5 per share at the specified time) is satisfied and the 
customer is entitled to receive the promised return, the 
binary option is said to expire “in the money.” If, however, 
the outcome of the yes/no proposition is not satisfied, 
the binary option is said to expire “out of the money,”  
and the customer may lose the entire deposited sum. 

There are variations of binary option contracts in which  
a binary option that expires out of the money may entitle 
the customer to receive a refund of some small portion of 
the deposit—for example, 5%—but that is not typically 
the case.

In fact, some binary options Internet-based trading plat-
forms may overstate the average return on investment by 
advertising a higher average return on investment than a 
customer should expect, given the payout structure. For 
instance, in the example above, assuming a 50/50 chance 
of winning, the payout structure has been designed in 
such a way that the expected return on investment is 
actually negative, resulting in a net loss to the customer. 
This is because the consequence if the option expires out 
of the money (approximately a 100% loss) significantly 
outweighs the payout if the option expires in the money 
(approximately a 50% gain). In other words, in the  
example above, an investor could expect, on average,  
to lose money.

Investor Complaints Relating to  

Platforms
Fraudulent Binary Options Trading  

The seC and CFtC have received numerous complaints 
of fraud associated with websites that offer an opportunity 
to buy or trade binary options through Internet-based 
trading platforms. The complaints fall into at least three 
categories: refusal to credit customer accounts or reimburse 
funds to customers; identity theft; and manipulation of 
software to generate losing trades.

The first category of alleged fraud involves the refusal of 
certain Internet-based binary options trading platforms 
to credit customer accounts or reimburse funds after 
accepting customer money. These complaints typically 
involve customers who have deposited money into 
their binary options trading account and who are then 
encouraged by “brokers” over the telephone to deposit 
additional funds into the customer account. When  
customers later attempt to withdraw their original  
deposit or the return they have been promised, the 
trading platforms allegedly cancel customers’ withdrawal 
requests, refuse to credit their accounts, or ignore their 
telephone calls and emails.

The second category of alleged fraud involves identity 
theft. For example, some complaints allege that certain 
Internet-based binary options trading platforms may 
be collecting customer information such as credit card 
and driver’s license data for unspecified uses. If a binary 
options Internet-based trading platform requests  
photocopies of your credit card, driver’s license, or 
other personal data, do not provide the information.

The third category of alleged fraud involves the  
manipulation of the binary options trading software  
to generate losing trades. These complaints allege that 
the Internet-based binary options trading platforms 

2

www.investor.gov


Investor Assistance (800) 732-0330  www.investor.gov

3

manipulate the trading software to distort binary options 
prices and payouts. For example, when a customer’s 
trade is “winning,” the countdown to expiration is  
extended arbitrarily until the trade becomes a loss.

Unregistered Transactions, Operations, 
Broker-Dealers, or Trading Exchanges; 
Illegal Options Transactions
In addition to ongoing fraudulent activity, many binary 
options trading platforms may be operating in violation 
of other applicable laws and regulations, including certain 
registration and regulatory requirements of the SEC and 
CFTC, as described below.

Certain Registration and Regulatory  
Requirements of the SEC

For example, some binary options may be securities. 
Under the federal securities laws, a company may not 
lawfully offer or sell securities unless the offer and sale 
have been registered with the SEC or an exemption from 
such registration applies. For example, if the terms of 
a binary option contract provide for a specified return 
based on the price of a company’s securities, the binary 
option contract is a security and may not be offered or 
sold without registration, unless an exemption from 
registration is available. If there is no registration or 
exemption, then the offer or sale of the binary option 
to you would be illegal.

If any of the products offered by binary options trading 
platforms are security-based swaps, additional require-
ments will apply.

In addition, some binary options trading platforms 
may be operating as unregistered broker-dealers. A 
person who engages in the business of effecting securi-
ties transactions for the accounts of others in the U.S. 
generally must register with the SEC as a broker-dealer. 

If a binary options trading platform is offering to buy 
or sell securities, effecting transactions in securities, 
and/or receiving transaction-based compensation (such 
as commissions), it likely should be registered with  
the SEC. To determine whether a particular trading 
platform is registered with the SEC as a broker-dealer, 
visit the FINRA BrokerCheck website (www.finra.org/
investors/toolscalculators/brokercheck/).

Some binary options trading platforms may also be 
operating as unregistered securities exchanges. This 
would be the case if they matched orders in securities 
of multiple buyers and sellers using established non-
discretionary methods. However, there are cases where 
a registered broker-dealer with a trading system or 
platform may legitimately have no obligation to register 
as an exchange.

Certain Registration and Regulatory  
Requirements of the CFTC

It is illegal for entities to solicit, accept offers, offer 
to or enter into commodity options transactions (for 
example, foreign currencies, metals such as gold and 
silver, and agricultural products such as wheat or corn) 
with U.S. citizens, unless those options transactions are 
conducted on a designated contract market, an exempt 
board of trade, or a bona fide foreign board of trade, 
or are conducted with U.S. customers who have a net 
worth that exceeds $5 million.

To see the most recent list of exchanges that are designated 
as contract markets, check the CFTC website. There  
currently are only three designated contract markets 
offering binary options in the U.S.: Cantor Exchange 
LP; Chicago Mercantile Exchange, Inc.; and the North 
American Derivatives Exchange, Inc. All other entities 
offering binary options that are commodity options 
transactions are doing so illegally.

www.investor.gov
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizations&implicit=true&type=DCM&CustomColumnDisplay=TTTTTTTT


Investor Assistance (800) 732-0330  www.investor.gov

4

Further, entities that solicit or accept orders for  
commodity options transactions and accept, among 
other things, money to margin, guarantee, or secure 
the commodity options transactions must register as a 
Futures Commission Merchant. Entities that act as 
the counterparty (that is, they take the other side of the 
transaction from the customer as opposed to matching  
orders) for foreign currency options transactions for 
customers with a net worth of less than $5 million 
must register as a Retail Foreign Exchange Dealer.

■  

■  

■  

■  

Because of their lack of compliance with applicable 
laws, if you purchase binary options offered by 
persons or entities that are not registered with or 
subject to the oversight of a U.S. regulator, you 
may not have the full benefit of the safeguards 
of the federal securities and commodities laws 
that have been put in place to protect investors, 
as some safeguards and remedies are available 
only in the context of registered offerings. In 
addition, individual investors may not be able 
to pursue, on their own, some remedies that are 
available for unregistered offerings.

Final Words
■  Remember—much of the binary options market 

operates through Internet-based trading platforms 
that are not necessarily complying with applicable 
U.S. regulatory requirements and may be engaging 
in illegal activity.

■  Do not invest in something that you do not under-
stand. If you cannot explain the investment oppor-
tunity in a few words and in an understandable way, 
you may need to reconsider the potential investment.

■  Before investing in binary options, you should take 
the following precautions:

Check to see if the binary options trading 
platform has registered the offer and sale of the 
product with the SEC. Registration provides 
investors access to key information about the 
terms of the product being offered. You can 
use EDGAR (www.sec.gov/edgar/searchedgar/
webusers.htm) to determine whether an issuer 
has registered the offer and sale of a particular 
product with the SEC.

Check to see if the binary options trading 
platform itself is registered as an exchange. To 
determine whether the platform is registered as 
an exchange, you can check the SEC website 
regarding Exchanges at www.sec.gov/divisions/
marketreg/mrexchanges.shtml.

Check to see if the binary options trading  
platform is a designated contract market. To 
determine whether an entity is a designated 
contract market, you can check the CFTC  
website at http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic
=TradingOrganizations&implicit=true&type=DC
M&CustomColumnDisplay=TTTTTTTT.

Finally, before investing, check out the registration 
status and background of any firm or financial 
professional you are considering dealing with at 
FINRA BrokerCheck (www.finra.org/investors/tools 
calculators/brokercheck/) and BASIC Search (www.
nfa.futures.org/basicnet), the National Futures Asso-
ciation Background Affiliation Status Information 
Center. If you cannot verify that they are registered, 
don’t trade with them, don’t give them any money, 
and don’t share your personal information with them.

www.investor.gov
www.sec.gov/edgar.shtml
www.sec.gov/edgar.shtml
http://www.sec.gov/divisions/marketreg/mrexchanges.shtml
http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizations&implicit=true&type=DCM&CustomColumnDisplay=TTTTTTTT
http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizations&implicit=true&type=DCM&CustomColumnDisplay=TTTTTTTT
http://sirt.cftc.gov/SIRT/SIRT.aspx?Topic=TradingOrganizations&implicit=true&type=DCM&CustomColumnDisplay=TTTTTTTT
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://sec.gov/cgi-bin/goodbye.cgi?www.nfa.futures.org/basicnet/
http://sec.gov/cgi-bin/goodbye.cgi?www.nfa.futures.org/basicnet/
http://sec.gov/cgi-bin/goodbye.cgi?www.nfa.futures.org/basicnet/
http://www.sec.gov/divisions/marketreg/mrexchanges.shtml
http://www.sec.gov/divisions/marketreg/mrexchanges.shtml
www.sec.gov/edgar.shtml


EDGAR (www.sec.gov/edgar/searchedgar/webusers.htm)

FINRA BrokerCheck (www.finra.org/investors/toolscalculators/brokercheck/ )

BASIC Search (www.nfa.futures.org/basicnet)

SEC Publication: Ask Questions (www.sec.gov/investor/pubs/sec-questions-investors-should-ask.pdf )

SEC Investor Alert: Social Media and Investing—Avoiding Fraud (www.sec.gov/investor/alerts/socialmedia 
andfraud.pdf )

CFTC Consumer Protection (www.CFTC.gov/consumer protection)

International Organization of Securities Commissions (IOSCO) (www.iosco.org/lists/index.cfm?section=general )

Related Information

The Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither 
a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application 
of a particular law or rule, please consult with an attorney who specializes in securities law.

SEC Pub. No. 148 (6/13)

www.sec.gov/edgar.shtml
www.sec.gov/edgar.shtml
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://www.sec.gov/cgi-bin/goodbye.cgi?www.finra.org/brokercheck
http://sec.gov/cgi-bin/goodbye.cgi?www.nfa.futures.org/basicnet/
http://sec.gov/cgi-bin/goodbye.cgi?www.nfa.futures.org/basicnet/
http://www.sec.gov/investor/pubs/sec-questions-investors-should-ask.pdf
http://www.sec.gov/investor/alerts/socialmediaandfraud.pdf
http://www.sec.gov/investor/alerts/socialmediaandfraud.pdf
http://www.CFTC.gov/consumerprotection
http://sec.gov/cgi-bin/goodbye.cgi?www.iosco.org/lists/index.cfm?section=general
http://sec.gov/cgi-bin/goodbye.cgi?www.iosco.org/lists/index.cfm?section=general
http://www.CFTC.gov/consumerprotection
http://www.sec.gov/investor/pubs/sec-questions-investors-should-ask.pdf
http://www.sec.gov/investor/alerts/socialmediaandfraud.pdf