How to Avoid Stock Scams

Video Transcript

"My name's Phillip Beningoso. I'm an investment professional, and I'm going to be discussing how to avoid stock scams. Scam artists don't really care how you have come across your money. So, what can you do to avoid being scammed? First, you want to ask some questions and check out the answers. This is a critical; a critical part of any investment is to make sure that it is legitimate. Two, you want to research the company before you invest in it to make sure that that is a whole company, and that it's a worthwhile investment. You want to know your salesperson. Now, you don't need to know them like you do your brother-in-law or or a family member, but it's a good idea to make sure that it is a reputable person, and that person is abiding by the law; that they haven't done something that is beyond the law. And you also want to be wary of unsolicited offers, offers that you don't request yourself, e-mails, faxes, things of this nature. Now, some red flags that are warnings of fraud are if it sounds too good to be true it usually is, and if they guarantee returns, or if they say beauty isn't everything; that they're, they have a website and that website has all sorts of flash and looks like it's a very professional type of a company. And one of the most important is to pressure, to pressure you to send money right away; that if you don't take advantage of it today that this is going to escape your grasp. These are signs that somebody is tryin' to scam ya'. Now, the information provided here is for informational purposes only, and should not be considered an individualized recommendation, or personalized investment advice. Any investment or strategies mentioned here may not be suitable for everyone. My name's Phillip Beningoso. I'm an investment professional."