You can avoid being victimized by investment scams
- msmith635
- Mar 29, 2022
- 1 min read
New and creative scams are surfacing almost daily. We all want to be an early investor in the "next big thing," but you need to protect yourself from fraudulent investment offerings.
You can feel safe buying stocks that are listed on the major exchanges, because these are substantial companies which are subjected to considerable scrutiny by regulators. If you buy stock listed on the New York Stock Exchange or the NASDAQ, you can feel confident that the risk is minimal. That is to say, the company may not perform as well as expected, but at least the company's business and financial disclosures have been subjected to intense review by regulators, so it is highly unlikely that the company is simply scamming investors.
Yet, some of the best investment returns come from investing in start-ups and early development stage companies that have not yet made the "big time." You may be offered the opportunity to invest in such a company, but you should realize that these may not all be on the "up-and-up." Because these companies have not been subjected to SEC filing requirements, it can be difficult to evaluate the integrity of the promoters or the validity of their business plans. They may be totally legitimate, or they may exist for the sole purpose of making their promoters rich at the expense of unsuspecting investors.
Nevada Business Law attorneys are especially equipped to research and evaluate the legitimacy of the promoters and the merits of the investment opportunity. We encourage you to let us do an investigation and report to you BEFORE you invest.
Comments