Friday, April 19, 2024 10:34:15 AM
Potential for Fraud
Unfortunately, low-priced securities also can be more susceptible to fraud. Scammers might take advantage of some of the lesser listing and disclosure standards to misrepresent key facts about the company. They might exaggerate—or even invent—its products or capabilities, perhaps capitalizing on current events or market trends to appeal to investors.
https://www.finra.org/investors/insights/low-priced-stocks-big-problems
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