Scam Warning: Look out for the stock market numbers game
The old numbers game is a classic Stock-Market scam
Example: You receive in the mail a letter on expensive bond paper with a fancy letterhead. Or maybe you receive an email from a seemingly reputable sounding source of authority. In either case, a prediction is made to you of the future stock price of a company or the direction of the stock market will take in the immediate future.
Chances are you ignore the prediction in these first letters or emails. But then you receive subsequent letters or emails from the same source, and each time the forecast proves to be true. Now you're hooked.
So how does the scam work? It's just a variation of the old numbers game. Here's an example.
Tell fifty people that the stock price of ABC Company will rise tommorow and tell another fifty people the price will decline.
Whatever happens, you will be right for fifty of the people.
Repeat the process, and again you will be right for some of the people. Now you get the idea.
Herb
Example: You receive in the mail a letter on expensive bond paper with a fancy letterhead. Or maybe you receive an email from a seemingly reputable sounding source of authority. In either case, a prediction is made to you of the future stock price of a company or the direction of the stock market will take in the immediate future.
Chances are you ignore the prediction in these first letters or emails. But then you receive subsequent letters or emails from the same source, and each time the forecast proves to be true. Now you're hooked.
So how does the scam work? It's just a variation of the old numbers game. Here's an example.
Tell fifty people that the stock price of ABC Company will rise tommorow and tell another fifty people the price will decline.
Whatever happens, you will be right for fifty of the people.
Repeat the process, and again you will be right for some of the people. Now you get the idea.
Herb
posted by Herb Holeman, Author at
9:15 AM
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