How to Protect Yourself From Penny Stocks Fraud

Many people, without knowing it, fall into a penny of stock fraud, and in the end they lose a lot of money. To protect yourself from these scammers, you can do some simple things. To begin, you should make sure that you do not disclose any personal information when working with vendors and brokers. The information, such as the social guarantor number, investment history and others, must be kept confidential so as not to allow sellers to use them and declare that they have allowed the transaction.

davenport larocheAnother thing you can do to protect yourself is to do an investigation on Penny. Never be afraid to request financial information about the companies you have chosen. If the brokers reserve for their provision, then they should be careful. The same goes for the brokerage firm itself. Find out if the firm is authorized to conduct transactions in the state and verify if they have a disciplinary case against them. This will help you clean up the companies that can fool you. 

Another thing you can do to stay away from actions is to keep records.

You must receive from your agent all the documents related to your negotiation, including forecasts about the price and prospects of the different companies in which you want to invest. You should also keep notes on the information provided by the broker, and you can use these documents to get a second opinion about the financial move you should make.

To calculate the relationship between the debt and the equity of a company, divide the total of its liabilities by the total share capital of the shareholders. If the result exceeds 3, it is very likely that this company can not pay their debts in the long term. Let’s take a look at the old COIN favorite coin. You can see the balance of this company on the financial website. Looking at the balance, you can say that this company is an absolute scam. When you share your total liabilities: 27,571,000 for the total social capital: 5,047,000 you will receive a response 5.

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Since it is higher than the top 3, they will not be able to pay off their long-term debts. What is a company if they can not pay their debt? Penny Stock fraud like this, the dream of the short sellers! The scam of the short beast – one of my best strategies. This particular action is not the only scam there. Look at the 1000 cent stock! Many of them will be pumped, swollen and manipulated to the maximum by the advance of illegal actions, and all you have to do is reduce them and bring them back to their place of origin.



The davenport laroche will provide many benefits if you use common sense when interacting with your brokers. Do not let agents leave you to make decisions, and if you have questions and problems, do not be afraid to ask, as this will save you from any attack.