After all the recent scandals, one would think that investors would have become more knowledgeable about financial matters. However, many investors are ignorant when it comes to financial matters and are actually extremely careless when it comes to their money, a recent study by Securities Industry and Protection Corp. (SIPC) and the Investors Protection Trust reveals, according to the South Florida Sun-Sentinel.

Investors surveyed reported that they know the meaning of diversification, but knew little else. In addition, most investors do not read prospectuses and do not look into the history of their broker. On the brighter side, 90% of investors read their monthly account statements.

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