If you’re considering investing in a company, you may want to download and print a copy of the investment offer. If the sales literature doesn’t include a prospectus with financial statements, ask for one. If you’re told that the company doesn’t have a prospectus, request a written financial disclosure about the company. All in all, you should have the following information:

• Offering circular: Sales literature that presents the investment.
• Prospectus: A formal written statement that discloses the terms of a public offering of a security or a mutual fund. The prospectus is required to divulge both positive and negative information to investors about the proposed offering.
• Annual report: A written report that includes a statement by the chief executive officer, a narrative about last year’s performance, and a forecast for next year’s performance. Financial statements include a balance sheet, income statement, a statement of cash flows, and retained earnings.
• Audited financial statements: Financial statements audited by a certified public accounting firm.

The SEC, doesn’t require companies seeking less than $1 million to be registered, but it does require these firms to file a Form D. Form D doesn’t include an audited financial statement, but it does state the names and addresses of the owners and promoters of the firm. Other information is limited. If a Form D isn’t available, the SEC suggests that you call its Investor Education and Assistance Department at 202-942-7040.