OTCPK:EXSFF - Post by User
Comment by
younggun3on Feb 12, 2009 8:35pm
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Post# 15775822
RE: a must read for DUMDUM
RE: a must read for DUMDUMImportant Questions
Here are some questions to ask yourself when presented with information that involves a security:
- Why have I been presented this opportunity from someone I don’t know? (If you get an e-mail from someone you know that proposes an investment opportunity, it never hurts to follow up with a phone call - crooks steal e-mail addresses all the time.)
- Who will benefit if this information is acted on? Manipulators’ favorite game is to pump up a stock they bought for almost nothing, then sell it after they create a buying frenzy based on false information. (This scam is known as pump and dump.)
- Do I know anything about this company other than what is in this special information? Never invest in a company you don’t know.
Common sense would suggest that investment scams are easy to spot, however investors lose millions of dollars each year chasing “hot tips” or believing anonymous information.
Of course, if your broker or financial adviser is tempting you with this type of information, he may be breaking the law or violating ethical standards of conduct. Report the incident immediately.