What if you were told that you could get a 40% return on your investment in just 90 days compared with 5% for bank savings accounts?
Would you join in? Well one man was able to scam investors out of $1 million (in 1921!) using what is now dubbed ‘The Ponzi Scheme‘.
In the beginning stock spam was just simple text. Shortly after, email spam filters adapted to block that.
Then spammers started to use html. Again, spam filters adapted to block that.
As an investor, you must be aware of the stock market scams. The following are two of the most common stock scams.
The pump and dump is one of the easiest and most common ways of taking money away from unsuspecting investors. Although it is illegal, the use of the pump and dump has actually increased because the Internet has made it possible to reach millions more people.
If you feel like your inbox is suddenly overrun with spam again, you are right.
Not long ago, there seemed hope that spam had passed its prime. Just last December, the Federal Trade Commission published an optimistic state-of-spam report, citing research indicating spam had leveled off or even dropped during the previous year.
The biggest difference between a microcap stock and other stocks is the amount of reliable, publicly available information about the company. Larger public companies are required to file reports with the SEC and any investor can review them for free from the SEC’s website. Professional stock analysts regularly research and write about larger public companies, and it’s easy to find their stock prices in the newspaper. In contrast, information about microcap companies can be extremely difficult to find, making them more vulnerable to investment fraud schemes.
