Pump and Dump Classic
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(pg. 3)
- Just say no to risky companies. There are plenty of legitimate companies
that offer growth without great risk.
- Be true to yourself. Know what your tolerance to risk is and how much you
are willing to invest and lose. If you invest in a penny stock be prepared
to lose everything.
-
Be leery of what you see posted in newsgroups, chat rooms, message boards
and what you find in your email box. The promoter will try to use any method
of communication to sucker you into his scheme.
-
Don’t believe everything you read in investment newsletters. Writers of
many newsletters are paid by the companies about whom they are writing.
Check the disclaimers at the end of the newsletters to determine if they
are being paid by the company they are recommending. The law requires that
writers disclose any compensations that they have received.
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(pg. 3)