7 Red Flags For Investors

Readers often ask how they can spot a potential stock scam.  Are there warning signs that signal investors to proceed with caution – or not at all?  The answer, of course, is that there are red flags that should trigger instant skepticism.

There are just so many ways to fool the public, and while investment schemes are constantly changing, the latest scams are often variations on older themes.

Still, stock schemes continue to thrive and their victims lose millions of dollars.  And while regulators eventually catch up with some of the schemers, it is often years after the fraud has concluded, and long after the profits and profiteers have disappeared.

Investors need to act as their own first line of defense, and avoid dubious investments in the first place.  How can they do that?  There are “red flags” flying that signal the possibility of a stock scam.  Here is our short list - seven warning signs that scream out, “Stay Away!”:

• Unsolicited Spam E-mails
• The Absence of Public Information
• Foreign Relations
• Uh, Oh Canada
• Opportunism.
• Shares AplentyPromoters.

Investors should pay attention to these warning signs.  There is no guaranteed way to avoid investment schemes (unless you don’t invest), but everyone can reduce his or her exposure to potential losses by remaining alert and informed.  Remember, there is no substitute for information.  Before you invest, investigate.

For more information about Debra Cherney visit at suggested link.