How To Avoid Tricky Oil And Gas Investments Pitfalls

September 8, 2014

You should already know by now but money is a tough one to handle. This is particularly true if you are investing. If you do not wish to make things more complicated, then you got to be wary of investing frauds. Here are some tips you can use when you want to avoid complications due to fraud, particularly when you are dealing with oil and gas investments.

First, ask as much questions as you can. This allows you to clarify all the information you have. You also can take this as a measure of how knowledgeable the fraudster is in his or her work. Do not simply rely on the additional information and references that the other party can provide you with. Ask.

Of course, researching before you invest is a given. Regardless of the product that you are investing, you have to do your research. Do not just rely on message board postings, news releases from companies, and unsolicited emails. These cannot serve as sole basis. You better look into the company’s financial statements or the statements from the proper authority.

There will be a salesperson assisting you with the investment. You got to know this salesperson, if you wish to avoid frauds. Check out the salesperson’s qualifications for this work. It does not matter whether this salesperson is someone you have known socially. Even if you know that salesperson, you cannot discount the possibility of a fraud after all.

Knowing the salesperson means checking into that salesperson’s background. Specifically, you have to see whether this salesperson already got a license to sell the securities within the state. The firm that this salesperson represents should never have any run-ins with regulators or other investors too. Check disciplinary history via SEC’s and FINRA’s online database.

Offers are normal for this work. However, it is a must for you to be extremely meticulous when dealing with unsolicited offers and pitches. This is particularly true when you are dealing with companies praised online but does not have current financial info from independent sources.

Protecting yourself on the Internet is a given. The Internet is a swamp that fraudsters can hide in. They wait for opportunities for victims to fall into their traps. If you are wary, then you can surely avoid these fraudsters. You also have to learn how to protect yourself and your investment on the Internet.

If you are carefully investing, then you should learn what to look into when you are making the investment. You should know what red flags you should be wary of. There are really a number of fraud red flags when dealing with the investment. If you get to know these red flags, then making a choice should not be a difficult task for you then.

Phantom riches, guaranteed returns, and reciprocity are some of the red flags of investing. Of course, you also have to be wary of the halo effect, the bandwagon effect, and even the pressure put to you by your salesperson. If you are familiar with these red flags, then you should be able to make the most out of your investment.

You can visit www.fossiloil.com for more helpful information about How To Avoid Tricky Oil And Gas Investments Pitfalls.

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posted in Stocks by Kerri Stout

 
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