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Financial Information Page--Fraud Page

Stock Market Fraud "Survivor" Checklist

Investor enthusiasm for the Internet has created tremendous financial opportunities in recent years – for stock market fraudsters! That's because they often use the Internet to lure innocent investors into their scams. But you can survive stock market fraud and avoid becoming a victim if you follow these steps before you invest:


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Be Skeptical   When you see an offer on the Internet, consider it a scam until you can prove it's legitimate through your own independent research.

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Consider the Source   Remember that the people touting a stock may be company insiders or paid promoters who stand to profit at your expense.

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Independently Verify Claims   Don't rely solely on claims by companies or promoters about new product developments, lucrative contracts, or the company's financial health.

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Beware of High Pressure Pitches   Watch out for promoters who pressure you to buy before you have an opportunity to fully research an offer.

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Research the Company   Always ask for – and carefully read – the company's prospectus and current financial statements.

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Confirm Registration   Check the SEC's EDGAR database or your state securities regulator to make sure the company is properly registered or legally exempt from registration.


 
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