Do you have a friend that invested in the stock market and made a killing? Me too. So I decided to try it. I got a book about the stock market and it said that you should only buy stock when it had gone up in price for quite some time. I investigated ABC company for hours every day for a week and then jumped in with both feet. The first day I made 3.00. Then there was an unfavorable news report about the company. Investors bailed like lemmings diving off a cliff and I lost 500.00. This is only the second day I owned it, remember. But I had investigated the company and new it was a good bet, and sure enough the share prices began to recover, although not yet back to their high point. I won't say I lost sleep over it but I was depressed a couple of times. So if you invest, and there is good news about a company, the price goes up. Bad news, it tanks. It's kind of like a roller coaster ride. You can get on the internet for advice and one "expert analyst" will say, yeah, buy ABC company, and another will say, don't buy ABC.
Therefore there are constant news driven price swings. And then there is something they call pump and dump. Some sleazy ba***rd buys a lot of shares of a cheap stock and then gets on investing forums and announces he has inside information that ABC company has discovered a revolutionary process or something. The share price skyrockets, this guy sells the stocks for the new high price and gets rich, time goes by, it turns out that there is no revolutionary process, and the companies share prices plummet.
I have learned that there are many ways to commit fraud in the stockmarket. The Chinese have learned this too. American investors saw the phenomenal growth in China 's economy and petitioned the SEC to allow Chinese stock to be traded on the New York eschange, Nasdaq, etc. The SEC followed through and the result was that millions of everyday people were swindled into buying the stock of companies that didn't physically exist. Not only average citizens were bilked, so were the directors of many prominent and well known mutual funds whose clients had trusted them with their money because of their expertise.
Seasoned white collar criminals in the making got into the game by short-selling the Chinese stocks so that when they were exposed as fraudulent and the share price hit the basement, they made fortunes. Basically if you short sell you win if you bet against the stock. The more sophisticated among them placed short sell orders and then exposed the fake companies to speed up the process of getting rich. Now many or them are using their illicitly obtained earnings to cover the costs of legal representation.
And, as if that weren't bad enough, operators in the U.S. began conspiring with the individuals in China with the fake companies in order to recruit more investors and steal more money!
I found out through investigation that most investors actually lose money in the stock market. There are a million ways to get screwed so if you ever do this be careful.
Therefore there are constant news driven price swings. And then there is something they call pump and dump. Some sleazy ba***rd buys a lot of shares of a cheap stock and then gets on investing forums and announces he has inside information that ABC company has discovered a revolutionary process or something. The share price skyrockets, this guy sells the stocks for the new high price and gets rich, time goes by, it turns out that there is no revolutionary process, and the companies share prices plummet.
I have learned that there are many ways to commit fraud in the stockmarket. The Chinese have learned this too. American investors saw the phenomenal growth in China 's economy and petitioned the SEC to allow Chinese stock to be traded on the New York eschange, Nasdaq, etc. The SEC followed through and the result was that millions of everyday people were swindled into buying the stock of companies that didn't physically exist. Not only average citizens were bilked, so were the directors of many prominent and well known mutual funds whose clients had trusted them with their money because of their expertise.
Seasoned white collar criminals in the making got into the game by short-selling the Chinese stocks so that when they were exposed as fraudulent and the share price hit the basement, they made fortunes. Basically if you short sell you win if you bet against the stock. The more sophisticated among them placed short sell orders and then exposed the fake companies to speed up the process of getting rich. Now many or them are using their illicitly obtained earnings to cover the costs of legal representation.
And, as if that weren't bad enough, operators in the U.S. began conspiring with the individuals in China with the fake companies in order to recruit more investors and steal more money!
I found out through investigation that most investors actually lose money in the stock market. There are a million ways to get screwed so if you ever do this be careful.
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