How to Use the Internet to Invest Wisely

Information on tax issues related to investment fraud losses.

How to Use the Internet to Invest Wisely

Postby jacobfernandas » Fri Jun 26, 2009 6:05 am

Before you invest be sure to check out the company online.

If you want to invest intelligently and turn clear of frauds, you must get the facts. Never, ever, make an investment based solely on what you read in an online newsletter or bulletin board posting, especially if the investment involve a small, thinly-traded company that isn't well known. And don't even think about investing on your own in small companies that don't file regular reports with the SEC, unless you are willing to investigate each company thoroughly and to check the truth of every statement about the company. For instance, you'll need to:
• get financial statements from the company and be able to analyze them;
• verify the claims about new product developments or lucrative contracts;
• call every supplier or customer of the company and ask if they really do business with the company; and
• check out the people running the company and find out if they've ever made money for investors before.
jacobfernandas
 
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How to Use the Internet to Invest Wisely

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