All securities, including stocks, bonds and notes, must be registered with the Securities and Exchange Commission (SEC) before they can be offered for sale to the public. Registered securities can be found in the SEC EDGAR database.

An investor should never purchase a security until its registration with the SEC has been confirmed. In addition, due to the rapid increase of fraudulent investment solicitations in recent years (especially via the internet), inexperienced investors should work with a financial advisor whose firm is registered with the Financial Industry Regulatory Authority (FINRA). FINRA regulates all securities firms that do business with the public.

For more information, read our related articles: Policing The Securities Market: An Overview Of The SEC and Who's Looking Out For Investors?

This question was answered by Katie Adams.