NASD Alerts Investors on Terrorism and Anthrax Investment Scams
WASHINGTON, Nov. 15 /PRNewswire/ -- The National Association of Securities Dealers, Inc. (NASD)(R) today issued an Investor Alert cautioning investors of investment scams that cropped up around recent Anthrax scares and other terrorist-related events. Recommendations of stocks of companies that make defense, anti-terrorism, or biological detection products have increased in the past few weeks. While some of these claims may be true offers, many could turn out to be fraudulent hoaxes designed to inflate the price of the stocks. Recently, The Nasdaq Stock Market(R) and the Securities and Exchange Commission (SEC) have halted trading of companies because of questions regarding the accuracy of the companies' claims.
The Investor Alert, titled "Fears of Anthrax and Terrorism Spawning Investment Scams," is available on nasd.com and nasdr.com . The Investor Alert explains how to spot possible investment scams, and how to avoid being drawn into a potential hoax.
The Alert lists some of the claims to look out for that may be included in unsolicited faxes and emailed spam:
* Claims that a company possesses products, "newly developed"
technologies or services that will aid the U.S. anti-terrorism efforts
or protect consumers from biological threats, such as anthrax;
* Patriotic claims or appeals;
* Mention of contracts or affiliations with federal government agencies;
* Comparisons to well-know companies operating in the defense, security
or pharmaceutical industries;
* Standard corporate developments, like contracting with a supplier,
presented as major events;
* Terms, such as anthrax, anti-terrorism, World Trade Center attacks, to
increase the impact of the message;
* Price targets or predictions of exponential growth in a short period of
time; or
* Urgency, such as "You must act now!!"
The Alert also provides some pointers on avoiding a potential scam:
* Investigate before you invest.
* Find out who sent the message.
* Find out where the stock trades.
* Read a company's public filings.
For more details on this subject, please read the Alert at investors.nasdr.com .
Investors can view Investor Alerts, obtain more information about NASD and NASD Regulation, as well as the disciplinary record of any NASD-registered broker or brokerage firm by accessing NASD Regulation's Web Site at www.nasdr.com. Disciplinary records of NASD-registered brokers or firms can also be accessed by calling 800-289-9999.
NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, The American Stock Exchange(R), and NASD Dispute Resolution, Inc. are subsidiaries of the National Association of Securities Dealers, Inc. (NASD)(R), the largest securities-industry self-regulatory organization in the United States.
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SOURCE National Association of Securities Dealers, Inc.
CO: National Association of Securities Dealers
ST: District of Columbia, New York
IN: FIN
SU:
11/15/2001 12:15 EST prnewswire.com |
