| Stock tips are just as much a part of the market as | | | | bulk spam folder. Spammers buy stock in a small |
| stocks themselves. Honestly, where would we be | | | | company, often with stock prices of only a few |
| without tips? | | | | dollars or less per share. Then they send out millions |
| Are you looking for that next hot stock market tip | | | | of e-mail or text messages across the globe to |
| that is supposed to make you rich? Well, stop looking | | | | encourage recipients to buy that stock |
| and think again. Stock tips supposedly give you the | | | | Hot Stock Tip Scams |
| "inside scoop" on the next potential hot stock play so | | | | Investment bulletin boards and discussion groups are |
| you can buy in when the stock price is low but | | | | crammed with hot stock tips about impending |
| before the stock takes off. Then sell when it's high - | | | | developments and price soaring company mergers |
| making you a nice profit. In theory, it sounds like a | | | | that are sure to send a stock soaring in value. |
| good stock trading strategy. If it only worked that | | | | Beware, just because these tips appear on some |
| simple | | | | market forum doesn't mean they are exempt from |
| Know When to Buy | | | | insider trading laws and rules. Investors should be |
| The value of an actual stock tip depends when you | | | | aware that these stock tips can also come from |
| received it. You may think you are getting in on the | | | | almost any source, such as, internet chat rooms, |
| stock tip before it's about to take off, but in reality | | | | internet bulletin boards, unsolicited calls, e-mail or word |
| the people who are releasing these tips have already | | | | of mouth |
| purchased a large position at a lower price. More then | | | | Online scams from stock spam reportedly cost |
| likely, as you are buying in - they are selling their | | | | investors hundreds of millions of dollars each year. |
| positions! The real effectiveness (and profit) of a | | | | Many scams are difficult to uncover, and victims are |
| stock tip will depend on how many people jump on | | | | often reluctant to come forward, making data hard |
| the wagon and 'buy in' after you have already done | | | | to come by. Before taking any action on a 'hot stock |
| so | | | | tip', you should verify the source and do your own |
| Spam probably wouldn't be sent out if there wasn't | | | | research before investing. Investors are advised to |
| some kind of return on it, right? Which means that | | | | use their judgment before acting on these |
| there are people out there who buy penny stocks | | | | recommendations. Investments in stock markets is |
| based on advice from an email that landed in their | | | | risky. |