Dishonest brokers often ask their victims a steady stream of questions designed to derail honest investors from asking the right questions. In contrast, honest brokers encourage you to ask questions, provide you with additional educa tional materials, and make certain that you understand the risks involved in your investment decision. And if you decide not to spend your money, they’re untroubled by your investment decision.

The National Futures Association has collected 16 questions that are turn-offs for dishonest brokers (www.pueblo.gsa.gov/cic_text/money/swindles/ swindles.txt). In the following list, I’ve tailored those questions to meet the needs of online investors:

Where did you get my name? The dishonest broker may answer, “from a select list of investors,” but your name was probably obtained from a Usenet newsgroup question that you asked, from a bulk email response, or from a mailing list subscription.

What risks are involved in the investment? All investments except U.S. Treasury securities have some default risk. (U.S. Treasury securities are considered risk-free. The Federal government backs these securities just as it does the legal tender — that is, the money in your pocket. The gov ernment isn’t likely to fail, so the securities — and your money — are risk-free.) Some investments have more risk than others do. A salesperson who really has a sure thing won’t be on the telephone talking with you.

Can you send me a written explanation of the investment, so I can consider it at my leisure? This question provides two turn-offs to dis honest brokers. First, swindlers are reluctant to put in writing anything that may become evidence in a fraud trial. Second, swindlers are impa tient; they want your money right now.

Would you explain your investment proposal to my attorney, financial planner, investment advisor, or banker? You know the investment is a scam if the salesperson says something like, “Normally, I would be glad to, but . . .” or “Unfortunately, we don’t have enough time,” or “Can’t you make your own decisions?”

Can you give me references and the names of your principal investors and officers? Swindlers often change their names so that you can’t check their histories. Make certain that the reference list contains the names of well-known banks and reputable brokerage firms that you can easily con tact. The Investor Protection Trust page (www.investorprotection.org) includes links to various resources that you can use to check out a broker or other financial professional.

Which exchanges are the securities traded on? Can I have copies of the prospectus, the risk disclosure statement, or the audited financial statements? For legitimate, registered investments, these documents are normal. A legitimate investment may or may not be traded on an exchange. However, fraudulent investments never are.

What regulatory agency is the investment subject to? Tell the broker that you want to check the investment’s good standing with its regula tory agency before going forward. The possibility of having to talk to a representative of a regulatory agency is a real turn-off to a swindler.

How long has your company been in business, and what is your track record? Can I meet another representative of your firm? If the broker or the investment doesn’t seem to have a past, the deal may be a scam. Many swindlers have been running scams for years and aren’t anxious to talk about it.

When and where can I meet you to further discuss this investment? As you might imagine, dishonest brokers often won’t take the time to meet with you, and they don’t want you in their places of business. Legitimate registered brokers are happy to sit down and discuss your financial goals.

Where will my money be? What type of accounting can I expect? Often, funds for certain investments are required to stay in separate accounts at all times. Find out which accounting firm does the firm’s auditing and what type of external audits the firm is subject to. (Make certain that the well-known accounting firm is actually the auditor.)

How much of my money will go to management fees, commissions, and similar expenses? Legitimate investments often have restrictions on the amount of management fees the firm can charge. Getting what the firm charges in writing is important. Compare the firm’s fees with charges for similar investments.

How can I get my money if I want to liquidate my investment? You might discover that your potential investment can’t be sold or that sell ing your investment involves substantial costs. If you’re unable to get a solid answer in writing, the investment might be a scam.

If a dispute arises, how will it be resolved? No one wants to go to court and sue. The investment should be subject to a regulatory agency’s guide lines so that disputes are resolved inexpensively through arbitration, mediation, or a reparation procedure. Is your broker dishonest or just incompetent? The state of Massachusetts provides a list of investment watchdog agencies at www.sec.state.ma.us/ sct/sctlink/linkidx.htm. You can also find the names, telephone num bers, and, when possible, the Web link to each state’s securities commission.