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How to Handle High Pressure Cold Calling.

Have you received phone calls from a loud, pushy salespeople insisting that you purchase shares of a company you have never heard of before?

High-pressure cold calling is associated with speculative securities, so it is best to be aware. High-pressure cold calling is designed to convince you to purchase stock that you don't want to own. These stocks may be recommended because the broker makes money when you buy, not because the stock is right for you - and that may give you a basis to sue your broker.

If a broker has called you and tried to pressure you to invest quickly with no discussion of your investment needs and goals, then you have been the target of high-pressure cold calling. The broker may say that you are missing a "once in a lifetime opportunity" that is "only good for today." The broker may claim to be an expert with information that nobody else has or the broker may bully or insult you to get you to buy. If you have no funds to invest, the broker may recommend selling one of your other stocks or take a margin loan to buy his or her hot stock pick. Don't commit to buying a stock until you know it fits your investment needs.

Be aware of the 'three call system." The first call is to get acquainted with you, the second is to develop a comfort level with you and the third call is when the broker pushes you to buy whatever stock they are selling that day.

Luckily, you can prevent these types of calls but if you have been the target of high pressure cold calling you may be able to sue your broker.

To stop calls from a broker or other pushy salesman, you can use a simple and powerful tool. You can simply say "no thank you" and hang up the phone. Remember, a pushy sales person is hoping you continue to talk to them.

Or, the next time you receive an unwanted sales call, ask to be put on their 'Do Not Call List.' This should prevent further calls from that firm and/or broker.

You can also stop almost all telemarketing to your phone by contacting the State of Florida at 800-435-7352 and getting on the Do Not Call List. The Do Not Call List is a centralized list of numbers that no telemarketer is permitted to call, and if they do, they may be liable to pay you for violating telemarketing rules.