For many, investing can be a scary step. There are so many unknowns that keep new and experienced investors up at night. Will my stock go up? Will I lose money? Am I missing out on a big opportunity? While there are many questions that cloud investor's minds, there is one question that Public wants to be absolutely clear about. Your investments are safe with them.
Before we jump into the weeds of the protective measures that the Public app has put in place. Let's first understand what Public is and how it differentiates itself in the crowded brokerage space.
Offer valid for U.S. residents 18+ and subject to account approval. See Public.com/disclosures/.
Public is a new investing app that has burst onto the scene touting the never-failing tool of social media as its differentiator. The Public app uses a social media-focused approach when appealing to new investors thanks to its features based on connection and knowledge sharing.
Much like a Facebook news feed, investors can see who is making trades and comment directly on those trades. This feature allows engaged investors to ask questions and gain an understanding of why certain moves take place. In addition, users can open up chat rooms and group chats to make investing more collaborative and fun.
On top of all this, the Public app is free of commissions and has no account minimums. While the Public app does not charge commissions, keep in mind that users are charged fees as imposed by the SEC whenever trading equities.
Inside the app are +5,000 stocks and ETFs that are at the disposal of its large and expanding user base. Public may be a fantastic app if you are interested in social investing without getting bogged down by too many facts and figures. Though rest assured that Public also provides trends and company history so that you are making informed decisions.
Many investors, rightfully so, are skeptical about any institution that claims to safeguard their assets. This fear comes from the idea that a company can walk away and leave its users with nothing.
While several events in history books substantiate this feat, it has largely been subsided by two protective non-profits.
These institutions are tasked with safeguarding individual investors against malicious brokerage firms. The SIPC and FINRA are two organizations that have the safety of your capital at the forefront of their minds. Let's dive in and see how they protect you and your investments.
The SIPC (Securities Investor Protection Corporation) is a non-profit, non-government owned entity. This institution is tasked with insuring investor's money against a financial firm's insolvency.
While not owned or managed by the federal government, the SIPC protects individual investors from losses of up to $500K for securities and up to $250K for cash only.
The SIPC, as commonly misunderstood, does not protect against fraud and other actions of theft against an individual consumer. It does, however, ensure that investors are refunded their capital in the case of poor financial management by a broker-dealer.
FINRA (Financial Industry Regulatory Authority) is a government-authorized, non-profit. This firm ensures brokerage firms act with integrity and transparency in their dealings with investors. This institution promises to act as a watchdog so that investors can trust that their broker is handling their capital properly.
FINRA has established standards of excellence and watches to guarantee that each brokerage abides by the standards. Just like the SIPC, FINRA is not owned or managed by the federal government, but it does have the power to assist in regulating brokerage firms and exchanges.
While your money is protected against mismanagement and negligence on the part of Public, your assets are not protected from market conditions. Investing is inherently risky, meaning your money might not always grow. Losing it all is a very real possibility.
There is no financial institution that will safeguard you from poor investment decisions. Thus, it is imperative that you do the necessary research before deciding where to invest your hard-earned capital.
Users can feel completely confident that their funds are safely invested with Public. Public has put into place all the necessary guidelines, protections, and guardrails to ensure that your money is secure and without threat.
While FINRA and the SIPC can protect you from Public's wrongdoings, it cannot, however, protect you from the wrongdoings of firms with which you have invested. For that, the SEC and other government-authorized institutions will take charge.
Public may be the ideal tool to get you started with investing. So rest assured your money is in good hands and try Public today.