| The Internet is a great tool for penny stock | | | | and check the truth of every statement made |
| investors, however, it is also a great tool for | | | | about the company. Here are four actions you |
| impostors as well. Smart investors need to learn | | | | can take to avoid fraud: |
| how to spot, and stay away from Internet fraud. | | | | ACTION # 1 Get financial statements from the |
| 1. Penny stock message boards have become a | | | | company and be able to analyze them. |
| popular way for people to share information. While | | | | ACTION # 2 Verify posts about new products, |
| some messages may be genuine, many turn out | | | | announcements or new contracts. |
| to be false, or even out right fraud. Impostors | | | | ACTION # 3 Call suppliers and/or customers of |
| often "pump up" a company or pretend they | | | | the company and verify their relationships with |
| know "inside" information about products, new | | | | the company. |
| contracts, or unreleased announcements. You | | | | ACTION # 4 Research the management of the |
| can never know for sure who is writing a posts. | | | | company and find out if they've ever made |
| These impostors can easily be paid promoters, | | | | money for investors before. |
| company management, or large shareholders. One | | | | Sounds like a lot of work? It is! Having invested in |
| person can easily create the notion of widespread | | | | the stock market for over 12 years, it has really |
| interest in a stock by posting numerous | | | | simplified my life to use a stock trading program |
| messages under different names. | | | | to pick my stocks. They are pros not impostors. |
| If you want to stay away from scams, you must | | | | You might want to look into using one as well. |
| get the facts. By no means, ever, buy a penny | | | | You can click here for more information. They |
| stock based only on what you read on a penny | | | | really help in taking the fraud out of investing, |
| stock message board. You shouldn't think about | | | | especially for people who do not have the |
| investing on your own in small companies that | | | | experience or the time needed to thoroughly do |
| don't file regular reports with the SEC. If you do, | | | | the research. |
| you should be willing to research each company | | | | |