Investor Alert: Celebrity Endorsements


The SEC’s Office of Investor Education and Advocacy (OIEA) is warning investors not to make investment decisions based solely on celebrity endorsements

Celebrities, from movie stars to professional athletes, can be found on TV, radio, and social media endorsing a wide variety of products and services – sometimes even including investment opportunities.  But a celebrity endorsement does not mean that an investment is legitimate or that it is appropriate for all investors.  It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment.

Celebrities, like anyone else, can be lured into participating (even unknowingly) in a fraudulent scheme.  Also, celebrities are sometimes linked to products or services without their consent so the celebrity may not even have endorsed the investment. 

Even if the celebrity endorsement and the investment opportunity are genuine, the investment may not be a good one for you.  Before investing, always do your research, including these three steps:

  • Check out the background, including registration or license status, of anyone recommending or selling an investment, using the search tool on;
  • Learn about the company’s finances, organization, and business prospects by carefully reading any prospectus and the company’s latest financial reports, which may be available through the SEC’s EDGAR database; and
  • Consider the investment’s potential costs and fees, risks, and benefits in light of your own investment goals, risk tolerance, investment horizon, net worth, existing investments and assets, debt, and tax considerations.

Never make an investment decision based solely on a celebrity endorsement, or other information you receive through social media, investment newsletters, online advertisements, email, investment research websites, internet chat rooms, direct mail, newspapers, magazines, television, or radio.

Additional Resources

Investor Alert: Beware of False or Exaggerated Credentials

Investor Alert: Beware of Stock Recommendations on Investment Research Websites

Investor Alert: Public Companies Making ICO-Related Claims

Report possible securities fraud to the SEC.  Ask a question or report a problem concerning your investments, your investment account or a financial professional.

Visit, the SEC’s website for individual investors.

Receive Investor Alerts and Bulletins from the Office of Investor Education and Advocacy (“OIEA”) by email or RSS feed.  Follow OIEA on Twitter @SEC_Investor_Ed.  Like OIEA on Facebook at

The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

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You can check out the background of an investment professional by using  It’s a great first step toward protecting your money.  Learn about an investment professional’s background, registration status, and more.  

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