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Saturday, March 10, 2012

Characteristics of a stock scam

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Many novice investors fall trap to marketing agents who sell them a loss making stock while giving very high promises. So one should be aware of such traps for stock investing which ultimately helps in loosing your hard earned money and may be even making you bankrupt. But how to identify a stock scam? is a big question. Although there is very less percentage of people which fall prey to stock scams but make sure you are not the one to fall into this list in future. Here in this post I shall list few characteristics of a stock scam, which you should be aware of so that in future if you get any call from telemarketer telling you for a very good investing oppurtunity which gurantees you 2x or even more returns...blah blah blah...then you should not fall into his trap and invest your hard earned money into it.

6 Characteristics of a stock scam:

1. The most important thing one has to keep in mind whenever any telemarketer calls you for Investment oppurtunity is to ask for "mailing the policy terms and conditions document" to your inbox rather then listening to his rubbish statements over phone. Most of such agents who sell scams will never forward you the actual official terms and condition document because they speak lies over phone whereas actual investment terms are no way near to ehat they say and mind you "No stock investment oppurtunity can ever offer guarantee returns", So following this approach you are saved from falling into a stock scam for sure.

2.Promising Excellent returns: Any marketing person calling and saying that his policy would give returns of 60 percent some craps often say 100 percent reutrns (how funny it sounds), but beware from such a stock investment oppurtunity as you would eventually lose the money which you have invested too.

3. Farzi company: Well known companies will never be part of such stock scams and these are generally done by companies not well known or not known at all, so one should be aware of the company promoting such investment oppurtunity.

4. Guarantee returns: Be-aware of the companies claiming guaranteed returns in stock markets, these claims are mostly scams, The easiest way for such company to come out of such scam is to declare bankruptcy and come out of all mess, whereas novice investors loose their hard earned money in the process which is never returned. Always remember Guaranteed returns is not applicable in any form of stock market investments.

5. Force selling: Many telemarketers try to force-sell their such scam schemes to people, by frequent calling and insisting that it is a great scheme would help you a lot financially, don't fall prey to such force selling and directly say no to the person so that he doesnot keep on bothering you time and again.

6. Hoax emails: Most of the novice investors fall prey to false emails which reaches their inbox claiming gurrantee returns of you have won huge amount "reserved for you". beware of such false emails as they deserve no other place then your trash-bin. HAPPY TRADING!!

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