Before Glenn invests in a potentially suspicious security, which action should he prioritize?

Prioritizing all of the actions listed is essential before investing in a potentially suspicious security. Each step addresses critical aspects of due diligence, helping to protect Glenn from fraud or poor investment decisions.

Firstly, verifying whether the financial manager is licensed and if the security is registered is crucial for establishing legitimacy. Registration indicates that the security is subject to regulatory oversight, while a license attests to the financial manager's qualifications and ability to manage investments responsibly. This verification serves as a safeguard against dealing with fraudulent or unqualified individuals.

Secondly, assessing whether the investment's returns have been abnormally consistent helps identify potential red flags. Investments that show unusually stable returns, especially in volatile markets, may indicate manipulation or fraud, such as Ponzi schemes, where returns to earlier investors are paid using the capital from newer investors rather than legitimate profit.

Finally, ensuring comprehension of the details and strategy of the investment is fundamental for making informed decisions. If Glenn does not fully understand what he is investing in, he may overlook significant risks or nuances that could affect the investment's performance. Knowledge of the investment's structure, underlying assets, and market conditions is critical for evaluating its potential risks and rewards.

Given that each of these actions plays a vital role in thoroughly vetting an investment,