Stock Trading Scams

We all aspire to succeed Warren Buffett. Who wouldn't desire to rank among the richest guys in the world? We would all prefer to invest wisely each and every time, but it is virtually impossible to do so. Scammers rely on people who are looking to earn a quick buck, and they try to entice us with dubious investment possibilities that are unfounded in fact. We'll work to recover your funds if you believe you lost money as a result of a fraudulent stock trading scam. Contact us right away.

How does the stock market work?

On stock markets, a sort of controlled exchange, investors can buy and sell ownership (stocks) of various companies. In most stock exchanges across the world, brokers who are licensed, nationally registered, and regulated help sellers transfer their stock to buyers.

Two instances of stock exchanges that are subject to regulation are the New York Stock Exchange (NYSE), which is located in the US, and the National Association of Securities Dealers Automated Quotations (NASDAQ). The stock market is more accessible than ever, and the barriers to entrance are getting smaller every year.

However, there are risks associated with this accessibility. We are all vulnerable to various forms of investment scams in the stock and investment industry, so it is our responsibility to exercise due diligence and safeguard our funds to avoid falling prey to stock fraud and stock scams.

Is the stock market rigged?

One of the most common questions and beliefs regarding the stock market is that it is rigged. Is it? The US stock markets are governed by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), among other governmental and non-governmental entities. There are overlapping legal requirements for the SEC and FINRA to monitor stock exchanges and various brokers involved in stock buying and selling. That does not mean, however, that we can totally prevent fraud and frauds.

Businesses that intentionally deceive individual investors include ENRON and Valeant Pharmaceuticals, which engage in illicit accounting and business activities both now and in the past. 'Too good to be true' advertisements are created by some dishonest persons, leading to Ponzi scams.