SubscribeAll Posts Tagged With: "auction rate"
Auction Rate Securities: How to Avoid the Wall Street Product Machine
Wall Street is a product machine. They are always devising new “packages” to sell their customers. A basic word of advice I can never share enough with new and seasoned investors alike is: “Know what you are buying.”
This hit me again last week.
Major brokerage firms settled class action suits with clients who bought a “risk-free” product called “auction rate securities.” Until February, auction rate securities had been a place investors could pocket a slightly higher yield without, they were told, “additional” risk.
Then, in the tumult of the credit crisis, the regular auctions failed.
This caused Goldman Sachs, Lehman Brothers, Merrill…
15Sep2008 | Investment U | Comments Off | Continued
Loading ...
