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Educating the Investor “ The false advertising”. Dr. Fadi Khalaf Secretary General Union of Arab Stock Exchanges Cairo October 8 - 2010. Different parties to educate and different programs. Stock Exchanges and Regulators are not always in direct contact with investors
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Educating the Investor“ The false advertising” Dr. Fadi Khalaf Secretary General Union of Arab Stock Exchanges Cairo October 8 - 2010
Different parties to educate and different programs • Stock Exchanges and Regulators are not always in direct contact with investors • Educating investors can’t be done without involving all other parties in this program
Mains Partners Financial Intermediaries Medias Universities
Financial intermediaries • Direct contact with investors • Conventional Publicity • Sponsoring Medias educational programs • Conflict of interests Long term positions / Commission on trades
Medias like other education programs have to fit with • ICSA International Council of Securities Associations -Principles and Best Practices for Investor Education - January 15, 2004:
1. Investor education programs should be efficient, effective and appropriate for their intended audience 2. Investor education should be delivered to as broad an audience as possible; 3. A comprehensive investor education program should include reference to investor protection services 4. A comprehensive investor education program should include measures to foster dialogue and cooperation between providers of investor education.
Before Educating the Investor • We have to increase awareness against falesadvertising • Led specially by some online Futures trading companies • Through opposite methodsShowing the risk before the opportunities
To avoid misunderstanding, Even Basic programs should get into some details. All markets does not behave the same way Equities, indices, commodities, Currencies, Fixed income, etc. ... Investing or trading on different markets with a same behavior can be very risky
Graph: TRADER’S MIND You become millionaire SURE if you were Billionaire