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Scams in Stock Trading

To be like Warren Buffett is our all-time goal. Who in the world wouldn't want to be one of the richest men on the planet? Though it is practically unattainable, we would all love to always make sensible investments. Con artists prey on those who are eager to make quick money by presenting us with questionable investment opportunities that are, in reality, unjustified. If you think you were defrauded of money by a fraudulent stock trading scheme, we will endeavour to get your money back. Reach out to us immediately.

How the stock market works

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), located in the United States, 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. It is our responsibility to exercise due diligence and safeguard our funds to prevent falling victim to stock fraud and stock scams, as we are all vulnerable to various forms of investment scams in the stock and investment industry.

Is there manipulation in the stock market?

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 legislative requirements for the SEC and FINRA to monitor stock exchanges and various brokers involved in stock transactions. That does not mean, however, that we can totally prevent fraud.

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 and lead to Ponzi scams.

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