As a public service.There are sometimes warning signs that the company you are involved in could actually be a scam. Don't know why I'm posting here, these could apply to any company.
Let's review;
1. The company claims to have 'Magic beans" There are always,"magic beans' involved. Another word for magic beans could be,'secret catalyst"
2. There may be the appearance of numerous shell games going on within the company. It could be such things as land deals that nobody can explain, or maybe wierd sales tranactions, or actual status of patents, or maybe questions about who actually owns the tecknology, things like that.
3. The company may issue and distribute shares using the less common.' firehose" method or the "halloween candy " method.
4. Management will sometimes liquidate some of their shares while telling you what a great long term investment the company is.
5. The company is always,"on the verge" of great success. An example might be, "on the verge of revenue" for a lenghly period of time, say, seven years.
6. " but it's different this time". Maybe that's why management is selling.
7. Does the company pass the "say it out loud" test. Try it now. Say out loud," so, the garbage goes in here and the oil comes out there, neat."
8. Does the CEO look like John Candy.
You're welcome.
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