Penny Stocks

[italkcash]

Penny Stocks is one of the most common emails people are getting today. Penny stock is cheap to invest in (thus the name) and also a very easy target to get pumped up artificially. The sceme is rather simple as conducted today. Send enough mass emails that sounds like a reliable investment, hope that at least 2% trusts your email and see that they purchase the stocks.

Afterwards sell your own share of the stocks and short after the stock is probably going to hit its original value again. It actually only requires a mass email program and a list big enough. Then of course it also requires that you buy the stocks yourself before sending it to all the people so that you get it the cheapest way.

[italkcash]

As well as penny stocks, a so called Boiler Room is a place to conduct broker business of inflating penny stocks or stocks that does not even exist. In most cases the telemarketing people are selling bogus stocks, not even listed at any public index, as well as selling worthless stocks just because they themselves have a stake in the stocks.

The boiler room starts the process off as a bridge loan. When a small company is looking for financing, they look to an investment bank to raise capital. Usually this is a legal procedure but most boiler rooms perform this function for companies that don't exist.

The only way to legally conduct a boiler room would be to have a broker license and use the invested money for high risk investments such as forex trading or financial spread betting. Either way telemarketing works for most people and usually pays of good money to the owners, but most of them seem to fall in the pits.

[abraxus]

i got this kind of emails almost everyday. i rather go to stock market itself or any certified financial institution than believing to this kind of emails..hehee..better safe than sorry.

[Samanosuke_04]

Didn't really understand the procedure of this program.. Does it mean that if I am to invest,, I need to buy a product (or stock rite?) first, and then promote it to others by sending a lot of mails, is it true what I'm talking about?

[kereta06]

Originally Posted by Samanosuke_04

Didn't really understand the procedure of this program.. Does it mean that if I am to invest,, I need to buy a product (or stock rite?) first, and then promote it to others by sending a lot of mails, is it true what I'm talking about?

same like me. It is like common stock whci are listing at nyse, nasdaq and amex

[nuaeman]

I'm not sure if I receive them as I never seen it before, probably they all end up in my spam box but I got one from a site and does it look something like this:

Here comes the big one! All signs show that AETR is ready to explode!

Alliance Enterprise (AETR)

Current price: 0.80

Add this gem to your watch list and watch it trade closely!

Apparently I wonder how effective this scam works since not many know stocks and if they do I think most would laugh at this.

[fightscam]

Hey I really wanted to know about this area about 3 or 4 ears ago, but I was discouraged by my work load then. But just as I saw this topic now, I think I have a curiosity to find more about this. I really want to know is there any way of trading penny stock online?

[lindazhao333]

Originally Posted by abraxus

i got this kind of emails almost everyday. i rather go to stock market itself or any certified financial institution than believing to this kind of emails..hehee..better safe than sorry.

I usually don't give face to any promotion email coming to my inbox, I don't think they are trustworthful, some really sounds good but who knows what's gonna happen after I really put my money in their stocks? I prefer reading in the forums to get more information about the investment programs to simplly paying money to check...