Promissory Note Investment Scams

Posted by: Desiree B. | Jan 01,2008

Learn more about promissory note investment scams. Promissory notes have to be registered with the SEC. But that doesn’t mean they are safe. In fact, many, if not most of the promissory note investment opportunities available are scams. What you need to know about promissory note investment scams:

 

Promissory notes are generally not offered to folks like you and me. They’re usually sold privately to investors and are not something that’s offered to the general public. Signs that you are hearing about an investment scam from a broker or an insurance agent might include the promise of high returns for comparatively low investments.

 

Be wary of any broker who promises a high rate of return on a short-term (nine months or less) promissory note. And run far and run fast from any seller who states that the promissory note doesn’t have any risk. Every investment carries risk. And promissory notes are often a part of an unscrupulous investment counselor’s portfolio.

 

Before you invest in any product, and especially before you invest in a promissory note, research the broker to make sure he or she is properly licensed to sell products with the SEC. Look online for more information about the broker to see if they are someone that you want to do business with. More and more companies are running business credit reports on the people they work with- why shouldn’t you?

 And whatever you do, don’t jump into any investment or sign any papers before you give yourself some time to do your research. 

 

Sponsored Resources Ads by Google