Wisconsin Department of Financial Institutions
Press Release

Wisconsin DFI Issues Social Media and Online Trading Investing Advisory

 

By - Apr 29th, 2021 10:01 am

MADISON, Wis. – While ever-evolving technology makes investing more accessible to greater numbers of people, informed investors know that technological democratization also brings significant risk. The Wisconsin Department of Financial Institutions (DFI) today issued an investor advisory to help raise awareness of the impact social media can have on investing and things investors should consider when using online trading platforms.

“In our digitally connected world, some investors turn to online chatrooms and social media platforms for information about investing or specific investment opportunities rather than using the services of a registered investment adviser,” said DFI Secretary Kathy Blumenfeld. “An impulsive investment today can derail your long-term investing strategy, so it is important to keep your emotions in check. Take time to research any investment and consider talking to a licensed professional before buying or selling.”

The advisory cautions investors to not make investment decisions based solely on online chatrooms or social media campaigns, and it provides an overview of how investors can avoid making emotional decisions that can negatively impact their investing strategy. It also discusses social investing, day trading, margin accounts, and share price volatility. The full advisory is available on the agency’s website here.

As with all investments, before making any financial decisions, DFI encourages investors to do their homework, ask questions, and contact DFI’s Division of Securities at (608) 266-2139 or email DFISecurities@dfi.wisconsin.gov for more information.

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