You get text messaged on your cell phone. You check it—and it’s not from anyone you know. Instead, it’s an unsolicited promotion for a low-priced “hot stock.” The short message includes a stock symbol and reads: HOT BUY. 200% Profit Mon. 100% IN 2WKS. You’ve been cell phone spammed!
09
Jun
What You Need to Know About Trading In Fast-Moving Markets
Posted by: GCM / Category: Investor EducationThe price of some stocks, especially recent “hot” IPOs and high tech stocks, can soar and drop suddenly. In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly.
07
Jun
What are Microcap stocks (or smallcap stocks) and how can I receive information about them?
Posted by: GCM / Category: Investor EducationThe term “microcap stock” applies to companies with low or “micro” capitalization, meaning the total value of the company’s stock. Microcap companies typically have limited assets. They trade in the ‘over-the-counter’ (OTC) market and are quoted on OTC systems, such as the OTC Bulletin Board (OTCBB) or the “pink sheets.” To receive information about these companies you can ask your investment professional if the company you are interested in files with the SEC (most microcap do not have to file) and request information from the broker about the business, its finance and the management of the company. You may also receive information by contacting the company directly.
The Internet serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the Internet is also an excellent tool for fraudsters. That’s why you should always think twice before you invest your money in any opportunity you learn about through the Internet.
This alert tells you how to spot different types of Internet fraud, what the SEC is doing to fight Internet investment scams, and how to use the Internet to invest wisely.
05
Jun
Ten Questions To Ask About Any Investment Opportunity
Posted by: GCM / Category: Avoiding ScamsWith any investment, whether promoted in person, by mail, telephone, or on the Internet, a wise investor should always slow down, ask questions, and get written information. Take notes so you have a record of what you were told, in case you have a dispute later.
1. Is the investment registered with the SEC and the state securities agency in the state where I live or is it subject to an exemption?
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