Investment Scams
COMMON INTERNET SCAMS
INTERNET SCAMS
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INTERNET SCAMS come in many types.
Fake websites that look like your bank asking for your information
Internet scams list is long so look for the warning signs and research the opportunity!
<<<<< INTERNET SCAMS LIST
INTERNET SCAMS LIST
&
Work at home scams
Internet scams helping people avoid Internet scams
Internetscams.us
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INTERNET SCAMS come in many types.
Fake websites that look like your bank asking for your information
Internet scams list is long so look for the warning signs and research the opportunity!
<<<<< INTERNET SCAMS LIST
COMMON INTERNET SCAMS TO AVOID MAY LOOK LIKE
INTERNET SCAMS LIST
&
Work at home scams
Internet scams helping people avoid Internet scams
Internetscams.us
INTERNET SCAMS
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scam noun, verb, scammed, scam·ming.
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scam noun, verb, scammed, scam·ming.
–noun
1. a confidence game or other fraudulent scheme, esp. for making a quick profit; swindle.
–verb (used with object)
2. to cheat or defraud with a scam.
Origin:
1960–65; orig. carnival argot; of obscure orig.
RESEARCH THE OPPORTUNITY BEFORE PAYING MONEY IT COULD BE AN INTERNET SCAM
Internet Scams come in all shapes and forms. Some Internet scams even use known names like Google, even though the scams are not related to Google but can appear more legitimate using familiar names. Scams even design fake websites to look like paypal or your own bank to get information. Be very aware of Internet scams and tactics scams use.
Email Internet Scams
Investment Scams
Different Types Of Investments
When deciding where to invest your money you need to account investment goals and objectives. Different types of investments carry varying risks and return.
CD
A bank CD is a very safe investment. The CD is FDIC insured up to $100,000, so there is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or you'll receive a penalty. Bank CDs generally only pay up to 5% interest.
Bonds
A bond is a loan you make to a company or a government. Bonds have degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be.
Stocks
Stocks are investments in companies. Depending on the company, the risk can be high or low. Obviously, buying stock in Johnson and Johnson is a lot less risky than a new internet startup company. In general, the stock market returns on average about 10% a year, though the actual return of any given stock will vary significantly.
Mutual Funds
A mutual fund typically invests in over 100 stocks, so it's a way to diversify your portfolio. However, the mutual fund generally charges a fee, which is about 1% of your assets per year.
Real Estate
Real estate is a popular investment. The most obvious real estate investment you'll make is when you purchase your home. Your home can go up or down in value when you sell it; it depends on the housing market in your area.
Different Types Of Investments
When deciding where to invest your money you need to account investment goals and objectives. Different types of investments carry varying risks and return.
CD
A bank CD is a very safe investment. The CD is FDIC insured up to $100,000, so there is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or you'll receive a penalty. Bank CDs generally only pay up to 5% interest.
Bonds
A bond is a loan you make to a company or a government. Bonds have degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be.
Stocks
Stocks are investments in companies. Depending on the company, the risk can be high or low. Obviously, buying stock in Johnson and Johnson is a lot less risky than a new internet startup company. In general, the stock market returns on average about 10% a year, though the actual return of any given stock will vary significantly.
Mutual Funds
A mutual fund typically invests in over 100 stocks, so it's a way to diversify your portfolio. However, the mutual fund generally charges a fee, which is about 1% of your assets per year.
Real Estate
Real estate is a popular investment. The most obvious real estate investment you'll make is when you purchase your home. Your home can go up or down in value when you sell it; it depends on the housing market in your area.
Common Investment Scams
In recent years, there has been a massive proliferation of investment scams circulating the internet. I receive up to 5 emails every day containing these scams. The internet is a fantastic resource for investors, providing real-time stock quotes and access to current research and analysis. However, the lack of regulation in cyberspace enables financial gurus and hucksters to perpetrate their money-making flimflam on a daily basis.
Pyramid schemes are one of the most common forms of investment fraud pervading the net. With these, you are asked to contribute a certain amount of money, and then you are promised a return when new investors make their contribution. Eventually, the pyramid collapses when money owed to the previous investors is more than what can be raised.
Next on the list is an outright illegal practice called the pump and dump. This is when a small group of investors who hold a large number of shares in a company go around hyping the stock to the uninformed public. The resulting frenzy drives up the price of the stock, at which point the aforementioned small group of shareholders dump their shares at a high price before the general public knows that the stock is worthless. Sometimes, pump and dumpers will engage in short selling (short selling is a perfectly legal and legitimate practice, whereby you borrow stock from someone else and immediately sell it, hoping that the price of the stock will go down in the near future so that you can buy it back at a lower price and return it to the person who loaned it to you at a profit). With pump and dump short selling, the borrower sells the stock that was loaned to him and then goes around spreading bad rumors about the company to drive the stock price down so he or she can buy it back at a low price before returning the shares to the original owner.
You should also steer clear of any emails you receive about offshore investing or prime banks. Offshore companies, thanks to the internet, are no longer faced with obstacles such as direct mail or long distance telemarketing. Promises of huge returns from offshore investments are usually totally bogus. Another scam you need to be wary of involves prime banks. Prime banks are the top 50 banks in the world. Internet hucksters will ask for your money so that they can invest it in risk-free, high yield prime bank financial instruments. However, they will likely invest your money in high risk, speculative investment vehicles that have absolutely nothing to do with prime banks. Avoid prime bank solicitations like the plague.
I hope this information will help you avoid falling prey to investment scams. However, do not be afraid to invest in companies just because there is some pumping and dumping. Just because a few shareholders decide to pump up a stock for their own selfish gain, does not mean that the company is not a good investment. People have made fortunes on the stock market by investing in relatively new companies before anyone else knew about them. Those who did not invest in these companies because they thought they were pure hype lost out on a chance to make millions. Use your common sense when deciding whether or not you want to invest in a relatively unknown company. Do some research before you invest in and you should do fine.
About the Author
Jim Pretin is the owner of http://www.forms4free.com, a service that helps programmers make email forms.
