Janice has wanted to start investing for years but never did. As she was thinking of contacting a broker, an unknown broker called her and promised great returns from mutual funds if she started to invest with him that day. What should Janice do?

Select the best answer from the choices provided.
Ask about investing in stocks instead of mutual funds.
Put a little money in the mutual fund to test how well it does.
Hang up and find a broker through her bank or workplace.
Invest all her savings to make up for lost years of no investing.

Question

Janice has wanted to start investing for years but never did. As she was thinking of contacting a broker, an unknown broker called her and promised great returns from mutual funds if she started to invest with him that day. What should Janice do?


Select the best answer from the choices provided.
Ask about investing in stocks instead of mutual funds.
Put a little money in the mutual fund to test how well it does.
Hang up and find a broker through her bank or workplace.
Invest all her savings to make up for lost years of no investing.

anonymous · Answer

@jim_thompson5910

anonymous · Answer

@JoannaBlackwelder

jim_thompson5910 · Answer

hint: cold calls usually get the cold shoulder

jim_thompson5910 · Answer

especially if this cold caller is (completely) unknown

joannablackwelder · Answer

I think @jim_thompson5910 has the right idea.

anonymous · Answer

then its C?

jim_thompson5910 · Answer

Yes. You should hang up and not let the caller gain any leverage or anything. If you were interested in any way, then you'd do a lot of research into the firm before even thinking about investing a dime. The fact that he 

a) promises great returns

and

b) insists that the investment must be made that day

are bad signs of a bad investment. You shouldn't rush into anything, especially if it's brand new. It sounds like he's trying to sucker poor people into giving him free money (more or less).

anonymous · Answer

@jim_thompson5910  ty