subject: Stock Market Fraud: An Overview [print this page] Stock market frauds have resulted in a large number of people losing considerable amounts of money, and they have also been responsible for sending many company directors to prison.
If you are investing in the stock market, you should remember that this field is not devoid of its share of unscrupulous elements, and this something you have to watch out for.
There isn?t any one fixed pattern that emerges from the stock market frauds that have been uncovered so far, with different methods being employed by different fraudsters. Remember, a stock market fraud could end up making a lot of money before it is finally uncovered.
A stock market fraud can be perpetrated by either an individual or a company, and the size of the scam would generally depend on this. However, there have been instances when individuals have managed to carry out some very large scale frauds.
As a stock market investor, there are things that your should bear in mind at all times. One of the most important things to remember is that any unsolicited advice about any insider information should not be followed without thorough research.
You should also be wary of brokers trying to misrepresent facts surrounding any particular stock. When a broker tries to hide or misrepresent stock related information, you should ideally be very watchful.
Get rich schemes involving investing in things such as oil exploration in uncharted territory, offshore accounts, gemstones, etc, should be carefully studied as well.
If your broker wants you to buy stocks that increase your risk factor, or if he advices you against investing in diverse options, you should ideally seek a second opinion.
Therefore, if you do come across schemes that appear to be unbelievably good, you should ensure that you go through every bit of information that you can get your hands on. Remember, if the stock market can make you rich, it can also leave you a pauper.
