SureTrader Nadex Advertisement Interactive Brokers Advertisement SureTrader
Home > Boards > The Lounge > The Rules: OTC, NASD, SEC >

MARKET SCAMS

RSS Feed
      Hide Sticky   Hide Intro
Moderator: HHUGHES Assistants:
Search This Board: 
Last Post: 3/1/2017 10:04:18 PM - Followers: 111 - Board type: Premium - Posts Today: 0

Tips for Avoiding Stock Scams on the Internet One of the most common Internet frauds involves the classic "pump and dump" scheme. Here's how it works: A company's web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest "hot" stock. Messages in chat rooms and bulletin board postings may urge you to buy the stock quickly or to sell before the price goes down. Or you may even hear the company mentioned by a radio or TV analyst. Unwitting investors then purchase the stock in droves, creating high demand and pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money. Fraudsters frequently use this ploy with small, thinly traded companies because it's easier to manipulate a stock when there's little or no information available about the company. To steer clear of potential scams, always investigate before you invest: Consider the Source When you see an offer on the Internet, assume it is a scam, until you can prove through your own research that it is legitimate. And remember that the people touting the stock may well be insiders of the company or paid promoters who stand to profit handsomely if you trade. Find Out Where the Stock Trades Many of the smallest and most thinly traded stocks cannot meet the listing requirements of the Nasdaq Stock Market or a national exchange, such as the New York Stock Exchange. Instead they trade in the "over-the-counter" market and are quoted on OTC systems, such as the OTC Bulletin Board or the Pink Sheets. Stocks that trade in the OTC market are generally among the most risky and most susceptible to manipulation. Independently Verify Claims It's easy for a company or its promoters to make grandiose claims about new product developments, lucrative contracts, or the company's financial health. But before you invest, make sure you've independently verified those claims. Research the Opportunity Always ask for — and carefully read — the prospectus or current financial statements. Check the SEC's EDGAR database to see whether the investment is registered. Some smaller companies don't have to register their securities offerings with the SEC, so always check with your state securities regulator, too. Watch Out for High-Pressure Pitches Beware of promoters who pressure you to buy before you have a chance to think about and fully investigate the so-called "opportunity." Don't fall for the line that you'll lose out on a "once-in-a-lifetime" chance to make big money if you don't act quickly. Always Be Skeptical Whenever someone you don't know offers you a hot stock tip, ask yourself: Why me? Why is this stranger giving me this tip? How might he or she benefit if I trade? For more information on how to use the Internet to invest wisely and avoid fraud, be sure to visit our Internet and Online Trading web page. There you'll find a vast array of tips, including Internet Fraud: How to Avoid Internet Investment Scams. http://www.sec.gov/investor/pubs/pump.htm http://ftp.sec.gov/index.htm AND MOSTLY!!! WATCHOUT FOR MESSAGE BOARD POSTERS WHO ARE ALWAYS SAYING, "I JUST TRY TO HELP OTHERS OUT, HAAAAAAAAA Only thing they will help you out with , is your $$$$$$$$$ THIS BOARDS IBOX WILL BE UPDATED SOON. PLEASE FEEL FREE TO CONTACT ME WITH ANY SUGGESTIONS. . Huey
PostSubject
#7479   some people just don't get it (or can't devnullmoney 03/01/17 10:04:18 PM
#7478   How do you know? devnullmoney 03/01/17 09:49:47 PM
#7477   Jefferson Davis Bootes Alottafagina 05/24/15 11:44:58 PM
#7475   I would like to apologize for calling ZLUS, pk341622 02/07/11 07:34:48 PM
#7474   JUNP, STHG, ZLUS scams! pk341622 02/03/11 08:15:03 PM
#7473   BTDG Huge SCAM TheProfit 10/18/10 07:05:34 PM
#7472   NUEC SCAM TheProfit 10/16/10 10:49:05 AM
#7471   HRAL EarnestDD 11/17/07 02:09:35 PM
#7470   Are Billions of Dollars at stake ?............. You decided........... HHUGHES 09/11/07 09:48:11 PM
#7469   Bingo!.................. September 10, 2007 (Computerworld) -- Federal authoriti HHUGHES 09/11/07 11:40:31 AM
#7468   Here is one I almost went for, DD HHUGHES 08/10/07 10:45:23 PM
#7467   Yeah I realize that. Just updating the board. CPTMatt 07/27/07 06:48:58 PM
#7466   Yech! I traded MGWE on a day or Stock Lobster 07/27/07 06:11:20 PM
#7465   MGWE - scam. CPTMatt 07/27/07 05:55:54 PM
#7464   Very interesting link HHUGHES 07/22/07 01:57:57 PM
#7462   Re: 7/12/07 - [EAG] California court freezes Eagle's shortsinthesand 07/18/07 04:55:39 AM
#7461   Whole Foods Launches Probe Into CEO Mackey's Web Posts shortsinthesand 07/18/07 03:12:51 AM
#7460   Lawsuit Against UBS Spotlights HHUGHES 07/18/07 01:33:39 AM
#7459   Canaccord fined over short sales HHUGHES 07/18/07 01:32:25 AM
#7458   Does somebody have any information on DGLV ? Thks TAKURI 07/17/07 03:49:56 PM
#7457   WANTED: HHUGHES 07/16/07 08:44:52 PM
#7456   Huey.. Thanks and no problem. I will be shortsinthesand 07/16/07 10:49:01 AM
#7455   Shortsinhand, Thank you for your contributions to this HHUGHES 07/16/07 09:40:18 AM
#7454   How is SBMI related to HMIT through the shortsinthesand 07/16/07 09:28:52 AM
#7453   Here's a fresh off the presses scam for shortsinthesand 07/16/07 09:01:59 AM
#7452   What Facts do you have to make that HHUGHES 07/16/07 08:39:06 AM
#7451   SEC Third Quarter Press Releases HHUGHES 07/16/07 08:17:32 AM
#7450   3 Indian men indicted in brokerage hacking scheme HHUGHES 07/16/07 07:23:13 AM
#7449   SEC charges two for penny stock spam scam HHUGHES 07/16/07 07:18:05 AM
#7448   Former Houston CEO indicted in stock scheme HHUGHES 07/16/07 02:33:32 AM
#7447   Hello and I hope we can bring this HHUGHES 07/16/07 02:24:03 AM
#7446   MEDP SEEMS LIEK A SCAM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! rumorman2006 07/15/07 01:39:40 PM
#7445   Anybody know anything suspicious about CBAY ? TAKURI 07/13/07 10:44:14 AM
#7444   Anyone looked into the PDR Exchange thing going FillTheGap 07/05/07 02:29:17 PM
#7443   Just wanted to say Nice Board. Too morcash 06/19/07 10:13:49 PM
#7442   Just about everything :) Berman is a total Risicare 06/03/07 04:04:36 AM
#7441   Anybody know anything suspicious about RSDS Psionic Trader 04/09/07 10:39:54 PM
#7440   PHLC not delisted Stock 04/01/07 01:39:44 PM
#7439   That post deserves to be on the Joke threadhead 01/03/07 04:55:18 PM
#7438   U.S. TREASURY SECRETARY ARRESTED IN GERMANY RedneckInvestor 12/30/06 09:27:25 PM
#7437   How the crooks in hedge funds operate: Stockbuilder 12/27/06 07:53:46 AM
#7436   Bayou Co-Founder Marquez Pleads Guilty, U.S. Says (Update4) RedneckInvestor 12/17/06 09:50:46 PM
#7435   Siemens fraud probe widens: WSJ Stockbuilder 11/23/06 10:50:16 AM
#7434   NEW YORK: Morgan Stanley Inc. was fined $500,000 Stockbuilder 11/10/06 08:37:03 AM
#7433   Ex-Homestore CEO Gets 15-Year Sentence up-down 10/13/06 01:03:26 AM
#7432   SEC Charges 33 Companies, Individuals W/ Fraud for sludgehound 09/22/06 04:11:21 PM
#7431   From Clark Howard.com: Stockbuilder 09/12/06 01:52:58 PM
#7430   A state regulator gets it right and nails DueDillinger 09/07/06 10:36:12 AM
#7429   Good post on how the game is rigged: Stock Lobster 08/28/06 12:37:37 PM
#7428   DSCs - Makes you nostalgic for the days Stock Lobster 08/28/06 12:34:41 PM
PostSubject