The North American Securities Administrators Association has released their list of the Top 10 Investor Traps of 2009.
Many of the traps listed below promise high returns to cash-strapped investors but provide little, if any, disclosure of risks. They also offer high commissions to aggressive sales forces.
When it comes to investing, remember to verify everything and everyone before you part with your money. Education and information are an investor’s best defence against investment fraud.
While the association has identified real estate investment schemes, leveraged ETFs, private placement offerings, natural resources investments and Ponzi schemes as the greatest potential threats to investors this year, the following is an alphabetical list of the top traps this year:
- Entertainment Investments
- Gold Bullion and Currency Scams
- Leveraged Exchange-Traded Funds (ETFs)
- Life Settlements
- Ponzi Schemes
- Natural Resource Investments
- Private Placement Offerings
- Real Estate Investment Schemes
- Short-term Commercial Promissory Notes
- Speculative Inventions and New Products
Stay tuned over the next few weeks as Before You Invest looks at each of these investment schemes individually.
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