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Created: 05/06/2001 04:36:25 AM - Followers: 112 - 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
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#7479 some people just don't get it (or can't devnullmoney 03/01/2017 10:04:18 PM
#7478 How do you know? devnullmoney 03/01/2017 09:49:47 PM
#7477 Jefferson Davis Bootes Alottafagina 05/24/2015 11:44:58 PM
#7475 I would like to apologize for calling ZLUS, pk341622 02/07/2011 07:34:48 PM
#7474 JUNP, STHG, ZLUS scams! pk341622 02/03/2011 08:15:03 PM
#7473 BTDG Huge SCAM TheProfit 10/18/2010 07:05:34 PM
#7472 NUEC SCAM TheProfit 10/16/2010 10:49:05 AM
#7471 HRAL EarnestDD 11/17/2007 02:09:35 PM
#7470 Are Billions of Dollars at stake ?............. You decided........... HHUGHES 09/11/2007 09:48:11 PM
#7469 Bingo!.................. September 10, 2007 (Computerworld) -- Federal authoriti HHUGHES 09/11/2007 11:40:31 AM
#7468 Here is one I almost went for, DD HHUGHES 08/10/2007 10:45:23 PM
#7467 Yeah I realize that. Just updating the board. CPTMatt 07/27/2007 06:48:58 PM
#7466 Yech! I traded MGWE on a day or Stock Lobster 07/27/2007 06:11:20 PM
#7465 MGWE - scam. CPTMatt 07/27/2007 05:55:54 PM
#7464 Very interesting link HHUGHES 07/22/2007 01:57:57 PM
#7462 Re: 7/12/07 - [EAG] California court freezes Eagle's shortsinthesand 07/18/2007 04:55:39 AM
#7461 Whole Foods Launches Probe Into CEO Mackey's Web Posts shortsinthesand 07/18/2007 03:12:51 AM
#7460 Lawsuit Against UBS Spotlights HHUGHES 07/18/2007 01:33:39 AM
#7459 Canaccord fined over short sales HHUGHES 07/18/2007 01:32:25 AM
#7458 Does somebody have any information on DGLV ? Thks TAKURI 07/17/2007 03:49:56 PM
#7457 WANTED: HHUGHES 07/16/2007 08:44:52 PM
#7456 Huey.. Thanks and no problem. I will be shortsinthesand 07/16/2007 10:49:01 AM
#7455 Shortsinhand, Thank you for your contributions to this HHUGHES 07/16/2007 09:40:18 AM
#7454 How is SBMI related to HMIT through the shortsinthesand 07/16/2007 09:28:52 AM
#7453 Here's a fresh off the presses scam for shortsinthesand 07/16/2007 09:01:59 AM
#7452 What Facts do you have to make that HHUGHES 07/16/2007 08:39:06 AM
#7451 SEC Third Quarter Press Releases HHUGHES 07/16/2007 08:17:32 AM
#7450 3 Indian men indicted in brokerage hacking scheme HHUGHES 07/16/2007 07:23:13 AM
#7449 SEC charges two for penny stock spam scam HHUGHES 07/16/2007 07:18:05 AM
#7448 Former Houston CEO indicted in stock scheme HHUGHES 07/16/2007 02:33:32 AM
#7447 Hello and I hope we can bring this HHUGHES 07/16/2007 02:24:03 AM
#7446 MEDP SEEMS LIEK A SCAM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! rumorman2006 07/15/2007 01:39:40 PM
#7445 Anybody know anything suspicious about CBAY ? TAKURI 07/13/2007 10:44:14 AM
#7444 Anyone looked into the PDR Exchange thing going FillTheGap 07/05/2007 02:29:17 PM
#7443 Just wanted to say Nice Board. Too morcash 06/19/2007 10:13:49 PM
#7442 Just about everything :) Berman is a total Risicare 06/03/2007 04:04:36 AM
#7441 Anybody know anything suspicious about RSDS Psionic Trader 04/09/2007 10:39:54 PM
#7440 PHLC not delisted Stock 04/01/2007 01:39:44 PM
#7439 That post deserves to be on the Joke threadhead 01/03/2007 04:55:18 PM
#7438 U.S. TREASURY SECRETARY ARRESTED IN GERMANY RedneckInvestor 12/30/2006 09:27:25 PM
#7437 How the crooks in hedge funds operate: cfoofme 12/27/2006 07:53:46 AM
#7436 Bayou Co-Founder Marquez Pleads Guilty, U.S. Says (Update4) RedneckInvestor 12/17/2006 09:50:46 PM
#7435 Siemens fraud probe widens: WSJ cfoofme 11/23/2006 10:50:16 AM
#7434 NEW YORK: Morgan Stanley Inc. was fined $500,000 cfoofme 11/10/2006 08:37:03 AM
#7433 Ex-Homestore CEO Gets 15-Year Sentence up-down 10/13/2006 01:03:26 AM
#7432 SEC Charges 33 Companies, Individuals W/ Fraud for sludgehound 09/22/2006 04:11:21 PM
#7431 From Clark Howard.com: cfoofme 09/12/2006 01:52:58 PM
#7430 A state regulator gets it right and nails DueDillinger 09/07/2006 10:36:12 AM
#7429 Good post on how the game is rigged: Stock Lobster 08/28/2006 12:37:37 PM
#7428 DSCs - Makes you nostalgic for the days Stock Lobster 08/28/2006 12:34:41 PM
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