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Stock Market Fraud "Survivor" Checklist

Investor Alert:
Stock Market Fraud "Survivor" Checklist

Investor enthusiasm for the Internet has created tremendous financial opportunities in recent years – for stock market fraudsters! That's because they often use the Internet to lure innocent investors into their scams. But you can survive stock market fraud and avoid becoming a victim if you follow these steps before you invest:


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Be Skeptical   When you see an offer on the Internet, consider it a scam until you can prove it's legitimate through your own independent research.

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Consider the Source   Remember that the people touting a stock may be company insiders or paid promoters who stand to profit at your expense.

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Independently Verify Claims   Don't rely solely on claims by companies or promoters about new product developments, lucrative contracts, or the company's financial health.

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Beware of High Pressure Pitches   Watch out for promoters who pressure you to buy before you have an opportunity to fully research an offer.

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Research the Company   Always ask for – and carefully read – the company's prospectus and current financial statements.

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Confirm Registration   Check the SEC's EDGAR database or your state securities regulator to make sure the company is properly registered or legally exempt from registration.

For more information on how to use the Internet to invest wisely and avoid fraud, visit the SEC's Internet and Online Trading www.sec.gov/investor/online.shtml web page.

We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.