There are many people around the world that are finding it tough financially. With the present state of the economy the stress of finances is enormous. Many people are looking for free financial tips so that they can get back on track financially. You may be interested in this article if you are looking for financial advice.There's no such thing as a free lunch, and that especially applies to supposedly free financial advice. Here's how to spot them so you don't get stung.


Wednesday 11 June 2014

The Oil And Gas Investor Prevention From Swindlers

By Kenya Campos


Today, there are already warnings given to most investors to avoid themselves being cheated by most swindlers. The securities regulators in a state are advising those investors to be cautious, especially they are giving part of their funds. They are advised not to be afraid to ask certain questions when someone is offering a deal to them. Thus, an oil and gas investor Brookshire Salt Dome must be careful in accepting a deal and needs to study further the company that already operating in the industry for so long.

There is a possibility that you will be away from swindlers if you are not pressured with an investment decision. You must follow different steps to consider before you give up your money for an investment deal. There are checklists that are offered to most business people if you have already decided to invest something to a company.

Before you invest your money, ask first their registration requirements. A legal operation must be registered in the state securities in the location where the business is operating. Once you already receive the information about the, contact the agency to check if the details you received are true. If they claim that they have terms of exemptions, you must ask on which area they are exempted to be sure.

If the agreement is legal, salespeople should answer all the questions that are given to them. They should not hesitate to answer, like the background of their company and how long do they exist in the industry in the field of oil and gas business. It is also important to know what are their compensations when they have made a deal. Contact the securities regulators in the state to verify if there are no rules and policies that are violated with the salesperson.

You should also inquire about the information of the company, its background and their experiences in the industry. It is better if you know their assets, retained earnings, capitalization and liabilities if there is any. Look for an important information about them, especially the funds that will cover all the costs.

You must be sure that the funds raised are in a separate account until needed and it cannot be mixed with the other funds. Be certain with the funds that are not used for other purposes. You must ask about how much they would spend for the cost of every fractional interest. You must know about the cost of the salaries, advertising, sales and commissions to the company. Ask for any documents that will be provided once the investment was made.

Disclosures are important to be granted to any investors about the relationship of the lessor and operator, sale of the lease and its cost together with other information. There must be an assurance that there is statement on the best time for the drilling. You must have the contract between the promoter and operator.

The checklist is sometimes a long process and it needs more time to have the result. There is a possibility that you can already invest before receiving the result. It is important, that before giving part of your funds to a deal, you must seek first the advice of a neutral expert to prevent being swindled.

The state securities regulators are also helpful for any information you need. They are the person that will help protect you from any investment scams in the society. If you seek their help, they will immediately give the details you needed.




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