What if I don’t understand my investments?
Generally, one duty every broker has is to explain the investments recommended to make sure that the client understands the reason for the investment, the type of investment, and the risks associated with the investment. If a broker fails to explain the recommended investments so that the client understands why it is being recommended and what risk it bears, then the broker can't make certain the recommendation is suitable for the investor, as required by the rules. If you don't understand your investments, make sure that your broker explains them all to you until you understand why they were recommended, and what risk they pose to your investment strategy. If the broker hesitates whatsoever, you should have someone else assess the risk in your account and whether the recommendations were appropriate.