[ad_1]

We’ve all received them in the mail. They come in flashy, vibrant, glossy reports, presenting a ground floor investment opportunity in the next revolutionary technology. They have catchy names like “Wall Street Insider” or “The Underground Stock Report.” These reports often connect the promoted stock to reputable companies or common global needs. However, don’t be fooled, because behind the promising façade lies a deceitful practice known as the “pump and dump.”

The scam revolves around these tiny companies, typically traded on the Over the Counter Bulletin Board (OTCBB), also known as “Pink Sheets.” These companies are not part of the NASDAQ Exchange and usually comprise unstable start-ups. They pay a hefty sum to a “stock promoter,” who often collaborates with them in the scheme. The promoter accumulates large blocks of stock, then sends out the mailer. Now the trap is set, as unsuspecting investors witness the stock rise and rush to catch the wave. Meanwhile, the owners and promoters sell everything, executing “The Dump,” and leaving you with worthless shares.

They’ll often direct you to internet bulletin boards with carefully controlled messages, luring you into patiently waiting for the next big thing to skyrocket from mere pennies or micro-pennies to $0.50, $1, or maybe even the next Google! You might think, “Even if it reaches $0.04, I’ll double my money, right?” Unfortunately, once the promoters and insiders exit the scene, these companies rarely stick around for long. Need more proof of their fraudulent nature? Just read the fine print. We tend to ignore it, captivated by grand claims and enticing graphs promising unfathomable wealth. However, the fine print reveals the truth: how much the promoter is paid, whether they own shares, and countless reminders that this is an extremely speculative, high-risk investment. In my opinion, it’s not an investment at all; it’s a massive scam that must be exposed and stopped.

So, when the next glossy mailer arrives at your doorstep and you’re tempted to think, “Well, it’s only $5,000. Let’s give it a shot!” I implore you, throw it away! Genuine, successful companies don’t launch their journey on the OTCBB as pink sheets. The stock market is inherently risky, and if you approach it like a casino, your outcome is likely to be the same as when you place bets in a casino.

[ad_2]

Ihab Salloum