luni, 9 iunie 2014

The Oil And Gas Investor Prevention From Swindlers

By Kenya Campos


Today, investors are already warned by the securities regulators to be preventive in dealing an investment, especially if you are not familiar with the company. You must ask the necessary questions before closing a deal with them. However, it is still important to engage a business with a reputable company and already certified by the stock exchange commission. An oil and gas investor Brookshire Salt Dome must be cautious and aware with this warning.

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 investing something, you must ask first the registration requirements. You should interrogate the promoters if they are a member in the state securities in which their business is located. Then, you can contact the agency to verify the information you received. If the promoters are claiming that they have exemption with the requirements in a state, you find out on which area and terms of their exemption.

If the deal is legitimate, there is reason for a salesperson to be hesitant when interrogated with questions. Ask the name of the salesperson who offers you security, his background and their oil and gas ventures. You can also ask what commission or compensation do the salesperson will have in the end. Call the state securities agency and verify if the promoter has been penalized for any violations of laws in the past.

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 also ensure that your funds raised are separated from the current funds of the company. Make sure that your money is not used for other purposes without knowing it. You must be able to know the right spending for the cost of the fractional interest. Know the costs for the sales, advertising, salaries and commissions of the company. There should be a document stating that there is a deal made by you and the promoter.

A request for any disclosures to a person in selling the lease, relationship of the operator and lessor, cost of the lease and other pertinent information. There should be a secured statement that is an indication when is the start of the drilling. You must insist to see a copy of the contract of the operator and promoter.

Actually, if you just followed the checklist, it may sometimes take longer and there is a tendency that you have already engaged in the investment deal before receiving the result of your consultation. Thus, it is better to directly consult and ask for an advice from a neutral expert.

You can also seek help from your state regulators, since they have the responsibility for the safety of each investor in their area. You can ask them to ask necessary questions, especially when it comes to business matters.




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