Home » Finance

Scams In Stock Investing

Dec 1, 2007
The wide popularity of stock investing has also attracted scammers, who are well armored with their frauds and ready to take your money away. Thus, you have to be well aware of their fraudulent actions and take the necessary actions not to become their victim.

The Internet has given scammers an additional field for action. They have managed to design such schemes that make you think that you are being part of a legal insider deal that will bring you a lot of money. However, most of the times you end up losing your money and with a lot of headaches.

Stock scams come in a variety of forms from very crude ones that are easy to be noticed to more sophisticated, that can need a lot of time to be revealed. They manage to give such legitimacy to the stock deals that will be undertaken that it is easy to fall their victim.

It is difficult to list you all of the stock scams that are already available. And even if we manage to do so, we cannot be sure that during this time a new fraud has not been designed.

However, certain events should serve you as a red flag that there is a scam behind the particular action. For example, if someone you don't know calls you and offers you a stock deal that is provided only to insiders, you should ask yourself why this person wants to do it, especially if you are not one of the major stock players. Additionally, if the deal is really so good, why the caller does not keep it for himself/herself, but wants to make you rich.

Other scammers have tried to address the naivety of some people that truly believe that there is such a system that guarantees 100% sure profit. No one can guarantee you this with stocks. If this could be done anyway, be sure that the profit will be really negligible and not worth the effort. Some scammers have gone a step further by offering such clients secret codes or passwords, which when used give you access to immense possibilities. Again ask yourself even if such a thing really exists, which is almost impossible, why will they give this information to you?

These are the crude scams that you can easily identify. However, some scammers have decided to make more efforts for the money they want to steal from their victims. Thus, they attempt at the purchase of stocks of almost unknown to anyone company. After this they start to spread rumors over the Internet usually that this is the next hot company. This results in the soaring of its price to the desired level. You are also attracted by this price increase to later find out that the scammers have waited for this price levels to sell their shares. And you end up with a losing company and money losses.

To sum up, apply the necessary caution the next time you are offered a stock deal in order not to lose your hard earned money.
About the Author
The successful investor Dustin Johnson writes Stock Market Advices and Tips to help people educate themselves. Read more about Stock Market Investment Research.
Rating:
Please Rate:
(Average: Not rated)
Views: 173
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources