Learn How To Invest In The Stock Market

Making a foreign market investment can prove to be safe and profitable for many investors. Most investment professionals are part of a diversified investment strategy. There are many legitimate foreign companies doing business in the United States who offer tremendous value to U.S. investors.

Unfortunately, there are scam artists and other individuals who prey on the vulnerabilities of some investors. They tend to offer investment deals that promise high returns or mention no money down. They are also traced to Ponzi schemes designed to pay out initially but leave you with no money after the source of new funds dry up.

Responsibilities of an Investor

Avoiding fraud requires diligence on the part of you as an investor. The first rule of thumb regarding any investment opportunity is that if it sounds too good to be true, it probably is. Foreign securities sold in the United States are registered with a foreign bank who maintains U.S. branches. These investments are subject to the same rules as U.S. companies and provide detailed financial disclosures. A foreign company that is unable to meet the minimum disclosure requirements that U.S. companies meet should be viewed with a high level of skepticism.

Email Scams

Email based solicitations have received a lot of attention in the news as of late. These messages are sent on an unsolicited basis which talk about huge sums tied up in a commodities exchange like oil or diamonds or asks that you send a cashiers check to cover the cost of shipping your portion of a huge unclaimed estate. Although these solicitations are fraudulent, far too many individuals fall victim to these scam artists. 

Involve the Authorities

A foreign market investment is going to be based on information that is publicly available and verifiable and not on some promissory email or text message. The person making the investment pitch should be able to provide credentials and proof of licensure with a U.S. or foreign regulator. If you are unable to verify a person’s identity or claim relative to a stock offering in a foreign market, you should discontinue any further association and report their information to the Securities and Exchange Commission (SEC) or Federal Bureau of Investigations (FBI). Both the SEC and FBI work cooperatively on matters concerning investment frauds and will follow up to ensure that these types of programs are put out of business.

Recognizing fraudulent devices and schemes and responding appropriately is your responsibility as an investor. Do not allow hype and promises of fast riches encourage you to become the victim of a foreign market fraud.

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