Stock Trading and Stock Investing

Company Online Stock Trading By Hartley Bernstein

Online Trading Stock And (AXcess News) New York - The NASD has sound advice for investors. Beware of companies that claim to be poised to profit from efforts to combat a possible worldwide "bird flu" epidemic.

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Stock Investing Course It is not unusual for unscrupulous stock promoters and shaky companies to jump on a front page issue like avian flu. After 9/11, numerous obscure companies tried to claim a niche in the homeland defense industry. Similarly, dozens of companies attempted to attract investors by saying they had developed methods to detect or cure anthrax. Other shady operators have tried to take advantage of public fears about AIDS, oil shortages, and trade agreements.

1. The Pump and Dump stock market scam This type of stock market scam is mostly disseminated in the Internet. Here, people usually get to see messages posted in the Internet advocating them to purchase a stock at once. This type of scam also urges those who have stocks already to sell their stocks immediately before the value depreciates. These deceptive scammers claim that they have reliable sources about a threatening development. They even assert that they utilize a foolproof combination of the stock market and the trade and industry data so as to get some stocks.

Stock System Trading Efforts to exploit concerns about a flu pandemic should come as no surprise. As we noted earlier this month, one aggressive promoter has been touting the prospects of U.S. BioDefense, claiming that the Company was involved with the "first line of defense" against avian flu. The facts suggest otherwise. See, U.S. BioDefense, Inc. - Revisiting Rashomon.

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Stock Investing Game Investors should be aware of efforts to exploit international fears. NASD's December 28th "Investor Alert" warns that "the threat of bird flu is fueling stock scams touting large gains from companies that claim to be poised to capitalize on helping the world avoid a global pandemic." Such promotions use the "bird flu" code words in emails and faxes to promise large profits, even though the companies have few assets, no track records, and little chance of success.

There are other ways to invest in stocks. Dividend Reinvestment Plans (DRIPS) allow you to buy a single share of stock. As that share earns dividends, those dividends are used to buy additional shares. There are index mutual funds, in which you own a little bit of every stock traded on a particular index. There are also traditional mutual funds, made up of an array of stocks across many industries.

Market Stock Trading As NASD points out, the promoters know precisely which buttons to push. One fax claimed that a stock was positioned "to gain 250% or more" because the company "has the solution for tracking and containing the Bird Flu virus in turn preventing it from spreading." No credible news suggests the existence of such a process.

Online Stock Trading Canada How can investors spot bogus claims? NASD lists some of the most common red flags, including

Stock Investing Basics Price targets or predications of swift and exponential growth;

Day Online Stock Trading The use of facts from respected news sources to bolster a company's prospects. For example, the company or promoter may note that billions of dollars will be devoted to research, implying, without support, that the company may benefit by sharing in those revenues;

Online Stock Trading Game Efforts to associate the company with governmental programs. One campaign suggested that a Chinese government agency had the authority to require the use of technology similar to that which purportedly had been developed by the company;

Stock Investing Software Reference to other companies that have profited from "bird flu" products, even though some of those companies have not offered any such products or may have benefited from similar stock manipulations;

Online Option Stock Trading The Company recently changed its name to identify with the bird flu crisis;

India Online Stock Trading Promoters may support their pitch for a penny or sub-penny stock with claims that low-priced stocks can soar in value more easily than higher priced stocks;

Stock Investing For Dummy Imploring investors to invest now before they miss the opportunity.

Software Stock Trading NASD suggests that investors learn as much as possible about a company and the people who are promoting it before investing. Where does the stock trade? Generally, these scams involve companies that trade on the over-the-counter markets- the OTC Bulletin Board or Pink Sheets. Those stocks may be subject to dramatic price swings and can prove difficult to sell. Issuers that are listed on the OTC Bulletin Board are required to file regular financial reports through the SEC's Edgar System. NASD urges investors to review those reports in order to verify claims by a company or promoter. Most Pink Sheet companies do not file reports through Edgar, making them risky investments under the best of circumstances.

Online Stock Trading Review And, of course, NASD echoes StockPatrol.com's mantra: Before you invest, investigate.

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