Purported Health Supplements — Known as “Nutraceuticals” – May Not be Healthy for Your Investment Portfolio

“Nutraceutical” (derived by combining the words “nutrition” and “pharmaceutical”) refers to foods or food products that claim to provide health and medical benefits, such as weight loss, increased energy, muscle growth, or even a remedy for the common cold.  Whether or not these products provide their touted health benefits, the companies that offer them may not be healthy for your investment portfolio.

In a recent Investor Alert, the Financial Industry Regulatory Authority (FINRA) warns investors about potential scams related to “nutraceuticals.”  FINRA’s warning about potential nutraceutical stock scams includes companies promoting products ranging from fortified foods and energy drinks to “natural” medicines.  Some of these companies are running phony operations and may be the source of investment scams that have potential to harm uninformed investors.

For tips on spotting potential stock scams and distinguishing frauds from legitimate investments, read the FINRA Investor Alert.

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