The Investment Sounds Too Good to Be True
Trained salespeople know what people want to hear. If an investment sounds too good to be true, like most things in life, it probably is. Any pitches that use hyperbole — such as “incredible gains” or “huge upside with no risk” — are warning signs of a possible investment scam.
The Securities and Exchange Commission suggests learning what typical returns on investments are and being wary of those promising significantly more.
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