The product doesn't have to be fake
for the stock to be a scam. Most of the scams I have followed have had real products. Sometimes they are products of marginal value. But Always management discovers that the paper backing that product is far easier to sell than the product and far more lucrative.
That is the scam--how the stock is sold.
#1). You have money. Other people want it. All of it!
#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter,