| In this series of stock market tutorials I am going to | | | | investment. |
| teach you everything you need to know about | | | | · Offshore brokers - under SEC regulations |
| penny stocks. | | | | companies selling stock to overseas investors do not |
| Stock market tutorials - penny stocks | | | | need to register that stock. Companies will sell their |
| Today I am going to tell you a little bit about the | | | | stock to offshore brokers at a discount, these |
| scams involved with these kinds of shares. These | | | | brokers them sell it back to U.S investors for a large |
| kinds of stocks are an easy target for scammers. | | | | profit. Typically these brokers will cold call potential |
| This is because of the lack of information regarding | | | | investors and will use high pressure sales techniques |
| them as well as their poor liquidity. Here are some of | | | | to get them to buy. |
| the most common scams. | | | | One of the biggest misconceptions about these |
| · Fraudulent recommendations - this is when | | | | stocks are that all stocks were once like them. |
| companies pay off individuals to recommend them. | | | | Another misconception is that there is a relationship |
| These individuals can be people in the media, spam | | | | between the amount of stocks a person owns and |
| emails and even bloggers. My advice to you is to | | | | their returns. Both of these ideas are false, and while |
| carefully consider any recommendation you receive, | | | | there are some good quality penny stocks the vast |
| also try find out if the person is being paid for their | | | | majority are junk. |
| recommendation. This is a good sign of a bad | | | | |