Scam Bonds Brokers are notorious for their aggressive marketing, misleading promises and poor customer service. These firms often pose as genuine investment opportunities to attract investors. They may promise a free research report or gift, discount dealing charges or a time limit. They may also try to sell shares of an unreputable company or buy them for more than market value. Beware of such unscrupulous practices, and be sure to do your research before investing.
There are a number of warning signs to watch out for. The SEC has filed lawsuits against many of these firms. Some of the most common warning signs include high-pressure sales tactics. The broker may be using expected public disclosures of economic news and using fake testimonials. These high-risk investments are the most likely to become scams. To avoid becoming a victim of one of these companies, be sure to take the time to learn more about these companies and their practices.
Scammers may pose as investment professionals. Check to see if the company is registered with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission, and your state’s securities regulator. Be wary of any broker or investment firm that offers a guaranteed profit. Remember, every investment has a certain amount of risk and you should not invest more than you can afford to lose. It’s better to invest in something that is lower-risk and more stable than a high-risk one.