Skeeter; The people who do the scams have perfected the method over the past 100 years. All the offerings are couched in investor beware terms, and they work with groups of boiler shop operators in states with lax enforcement and penalty laws. Usually they skate on the edge of illegality, and couch their comments in ambibuities, like the three muses, preying on the intrisic greed of the sucker, who is blinded by that greed. A common trap is the insider who wants you to buy the stock as he cannot, after the profit is made you will split it with him, and he will tell you when to buy. All contacts are personal visits and are hard to tape, and you are cautioned never to mention it on the phone as that would debag the cat. So you buy and soon after the stock craters, and you have lost your money. If you complain you have no evidence as all the phone calls are innocent, moreover by stating you were part of a potential insider scam you are liable to prosecution, and they will be able to jail/fine you. So never buy a thing from a phone contact or a personal deal with an insider. research the stock well and use a mainstream broker, not a tiny scam house. Go to their place of business. Any secrecy walk away. An honest broker has little to hide(of course client trades are secret). Look at their previous picks, and office literature. Ask friends and other brokers about the. Look them up on Edgar to see if they have ever been sanctioned or have any employees who have.
Use you bank as an initial source reference to find one.(if you live in a lerge town) To be safe pick a nationally distributed broker like Nesbitt, Dean witter, etc.
Vigilance is the price of prosperity, if it sounds too good to be true it probably is.
How did you pick your large group of dogs?, usually a large group of dogs like that show a victim of a crooked broker(or a friend who is such a victime and you followed his advise and rode down with him)
Bill |
