Money Basics · Lesson 14 of 14
Read the Supporting Investor Education
Free guides from the SEC, FINRA and the OCC explain product mechanics and investor protections in more detail than any summary can.
In this lesson
- Know where to find primary-source investor education
- Match each resource to the topic it covers
This track summarizes. Regulators and the options clearinghouse explain the details. When a summary and an official document disagree, trust the official document.
Investing basics
- The SEC’s introduction to investing (opens in a new tab) — a starting point for goals, products and investor protections.
- The SEC on asset allocation and diversification (opens in a new tab) — how to mix investments and think about risk tolerance.
Options, leverage and orders
- The SEC’s introduction to options (opens in a new tab) — calls, puts and the risks of buying and selling them.
- FINRA on options, including the Greeks (opens in a new tab) — how options work and what the Greeks estimate.
- The OCC’s Options Disclosure Document (opens in a new tab) — “Characteristics and Risks of Standardized Options,” the booklet brokers must provide before approving options trading.
- The SEC on leveraged and inverse ETFs (opens in a new tab) — why daily-reset funds can drift from their benchmarks over time.
- The SEC on margin accounts (opens in a new tab) — how borrowing from a broker works and how you can lose more than you deposit.
- FINRA on stop orders (opens in a new tab) — why a stop price isn’t a promised exit price in a fast market.
Tip
Read each source alongside the lesson it supports, and note one thing it adds that this track didn’t cover.
Check your understanding
2 questions. Answer each one, then open “Show answer” to compare.
Show answer
Answer: B. The OCC’s Options Disclosure Document
The OCC’s “Characteristics and Risks of Standardized Options,” known as the ODD, explains how listed options work and their risks. Brokers must provide it before approving options trading.
Show answer
Answer: False.
Summaries help you learn the ideas, but official documents such as prospectuses, account agreements and the ODD set out the actual terms and risks.
Key takeaways
- Primary sources explain mechanics and protections in full detail.
- Official documents take priority over any summary.
Key terms
- Risk tolerance
- How much uncertainty and swinging account value you can emotionally handle without making rushed decisions.
- Options Disclosure Document (ODD)
- The OCC booklet “Characteristics and Risks of Standardized Options.” Brokers must provide it before you can trade options.
Sources and further reading
- Investor.gov (SEC): Introduction to investing (opens in a new tab)
- Investor.gov (SEC): Asset allocation and diversification (opens in a new tab)
- Investor.gov (SEC): An introduction to options (opens in a new tab)
- FINRA: Options (including the Greeks) (opens in a new tab)
- OCC: Characteristics and Risks of Standardized Options (ODD) (opens in a new tab)
- Investor.gov (SEC): Leveraged and inverse ETFs (opens in a new tab)
- Investor.gov (SEC): Understanding margin accounts (opens in a new tab)
- FINRA: Stop orders, factors to consider during volatile markets (opens in a new tab)
Progress is saved in this browser only.
Educational content, not investment advice. Lessons describe how markets and models tend to behave. They don’t tell anyone what to buy, sell or hold. Interactive examples use illustrative sample data, and simulator results are simulated — not actual trading. Options involve risk and are not suitable for all investors.
Risk disclosureCharacteristics and Risks of Standardized Options (OCC) (opens in a new tab)