The month of June has been an intriguing month for new investment companies here in the Philippines. SEC was able to turn down investment scams that were built in the southern part of the country, in Mindanao to be exact. The fact that these companies already have indications that they are scamming investors, more and more people are still falling into it. Instead of investing in some legit investments like stocks, mutual funds, bonds, and commodities, there are numerous investors who are choosing to put their money into something illegal because of their want to grow their money in a faster way. So, if you are new to investments, how do you know you’re investing in scams?
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Most scam companies nowadays are operating using a different license or permit. Although not a scam technically, they are still using illegal means to solicit funds from the public. One way you can do a background check of the company you are investing in is to visit the website of the SEC and search for the company. There you will find if there are any advisory about the firm if the company is registered in the SEC, and what kind of license do they have. You might also want to read current news and updates posted by SEC to know the recent happening in the industry. If the company is operating beyond its limit, you better report it or pull out your investments.
Become an investor in a legal and justifiable way. Ask yourself, is it really possible to earn high profits in a short period of time? Are there investments and businesses that always guarantee returns even if the market is down? If you really want to invest, you must learn that there are no best investments and businesses. Profits are not always guaranteed and this is the reason why we have to set a percentage for our risk tolerance. There’s always something to lose when you’re investing. Don’t let investment scams take away your common sense. Always be alert and know what you’re dealing with.
You will know you are investing in a scam company if the financial reports of the company are vague or if the company has no report at all. As an investor, you are entitled to know what is currently happening to the company financially. You have the right to demand the report. So, if the company doesn’t give you what you’re asking for, it’s better to pull out your investment. Along with investigating the FS report of your company, you should be able to know the principal activities of it and what type of industry it is in. Remember, the end doesn’t justify the means. Regardless of how successful and helpful the end is, the process should be done in a legal way.