What must a client do before proceeding with an investment?

The requirement for a client to sign an investment waiver before proceeding with an investment is essential to ensure that the client is fully aware of the inherent risks associated with the investment. An investment waiver typically outlines the potential risks, including market volatility and the possibility of losing part or all of the invested capital. By signing this waiver, the client acknowledges that they understand the risks, which can protect both the client and the investment firm from future disputes or claims regarding performance or outcomes that did not meet expectations.

This process emphasizes the importance of informed consent in financial transactions and ensures that clients are making educated decisions based on their risk tolerance and investment goals. In contrast, the other options do not represent standard prerequisites for investment. For instance, signing a contract for future gains could imply a guaranteed return, which is generally not a characteristic of investments, as they come with various uncertainties. Investing in multiple accounts may be part of a strategy but is not a formal requirement. Finally, while agreeing to all market risks is a fundamental principle of investing, it is not a documented process like signing an investment waiver. Thus, the waiver serves as a critical element in acknowledging and agreeing to the risks involved.