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STOCK MARKET FRAUD AND SCAMS IN INDIA

It is very important to stay away from Stock Market Fraud and Scams, this type of fraud and scam can cause a lot of loss of your money.

Therefore, in today’s topic, I am going to tell you about some common fraud and scam happening in the Indian stock market, so that you can avoid these fraud and scam.

WHAT ARE STOCK MARKET FRAUD AND SCAMS?

There are some people in the stock market and also some such companies, who promise new investors that – if they invest in the shares mentioned on their advice, they will get a lot of profit.

And when some investors invest by relying on them in a hurry and greed to earn money, then even the invested money is not able to get back and their money gets sunk and thus they suffer a lot of loss.

All this happens all the time in the stock market due to the wrong practices of some wrong people, and some companies and some people in a very systematic way trap people in their different schemes with the promise that with their services and advice. The investor is going to benefit a lot.

So this kind of fraud (cheating) activity in which people’s money is drowned due to the advice of some scheme and advisory company, then it is called stock market fraud and scams.

Stock Market Scams
Stock Market Scams

REASONS TO STOCK MARKET FRAUD AND SCAMS

According to valueresearchonline.com, only 2% of the people in India invest in the direct stock market, the reason for this is the lack of stock market information.

And taking advantage of this lack of stock market information, some people in India continue to make people a victim of stock market fraud and scams in different ways for their own benefit.

And as soon as the new people who want to invest in the stock market, some of them often fall prey to this stock market fraud and scam, and their hard earned money is lost.

So, if you also want to invest in the stock market, then keep in mind that you should constantly learn and understand about the stock market with your hard work, and stay away from any kind of scam and fraud.

Some of the major reasons for Stock Market Fraud and Scams in India are –

1.Lack of stock market information
2. The greed of people to earn money from the stock market as soon as possible.
3. Blindly trust the stock advisory company

TYPES OF STOCK MARKET FRAUD AND SCAMS

Some of the very common stock market frauds and scams that happen in India are as follows –

1. PUMP AND DUMP SCHEME FRAUD
2. ADVISORY COMPANY TIPS SERVICES
3. Calls and SMS in the name of a reputed brokerage firm

Now let us try to understand about them in some detail –

1. PUMP AND DUMP SCHEME FRAUD

In this type of scheme, some companies and people together, buy a lot of shares of a very small company in the stock market at a very cheap price, and now the people of the company buy and sell those purchased shares among themselves, and Takes the price up

And then by calling and calling millions of new and old investors in the market, they tell that – the stock of this company is going up a lot for the last few days, and it is going to go up a lot for the next one week or one month, and hence the stock will be very soon. Buy from now and earn profit.

Now out of millions of investors, a few thousand people fall into their trap and buy shares by relying on these messeges, and then these people keep selling their shares at this inflated price, and as soon as the stocks near them are exhausted. If there is no new buyer of that share in the market and soon the stock falls very low.

Due to which lakhs, crores of rupees of thousands of investors are drowned,

Caution and advice to avoid SCAM:

It is wise that you should always stay away from such messages, and keep DND service activated on your mobile, so that you do not get messages with such SPAM and SCAM.

And if a message comes to you or your friend, then be careful and do not pay any attention to such message.

Invest only on those stocks, on which you have STUDY, and in which you yourself trust,

2. ADVISORY COMPANY TIPS SERVICES

This is a very common fraud, in which people suffer the most, in this type of scam some stock market advice company first assures you that you really benefit from their tips.

And for this, it also provides free or trial service.

Free service and trial service can be for 1 week or 1 month, in which a few thousand people are convinced that they are getting a lot of benefit from this kind of stock marketing advice company tips.

And on the end of the free service or trial, such people are given a subscription package for the next 1 year, in which a huge amount is taken from these gullible investors as fees, and after that these ADVISORY COMPANY whatever TIPS In that, many times you get very big losses.

And when you complain about it to him, he explains the reasons here and there and tells about some other big package.

Ultimately, the gullible investors who blindly trust these fraud companies and buy their stated shares and also pay fees in return, then they get double loss.

One, the invested amount also gets sunk and the fees have already been paid by them.

So friends, if you also get calls from any such stock advisory company, Delhi, MUMBAI, INDORE, LUCKNOW, PUNE or other cities etc., then beware of these calls and disconnect the phone by saying NOT INTERESTED to them. , and also tell the matter of complaining directly to the police.

Otherwise these people will talk in such a way that you will fall into their trap and you may have to suffer a lot.

STOCK MARKET FRAUD AND SCAMS
STOCK MARKET FRAUD AND SCAMS

3. Calls and SMS in the name of a reputed brokerage firm

If you have opened a DEMAT account, then it may be that many different big names like BROKERAGE like – Sherkhan, Motilal Oswal, IIFL, ANGEL BROKING etc. will get you the message of stock TIPS in the name of the company,

In which you will be told hot tips about some stocks and that message will attract your attention and try to impress you that you buy the stock mentioned in the message, so that you get profit.

And when eventually some people who buy stocks by relying on these messages, they eventually have to bear the loss.

Because these messages also belong to the pump and dump company only.

HOW TO AVOID STOCK MARKET FRAUD AND SCAMS,

Friends,

These were some common Stock Market Fraud and Scams, but apart from this, many other types of Stock Market Fraud and Scams keep coming.

You should stay away from any kind of Stock Market Fraud and Scams and if you really want to make money in the stock market, then you have to work in the stock market for a long time, and like you study for years for a job. write and then you get a job and you earn money.

Similarly, in the stock market also the same people are able to earn money, who keep learning and understanding about the stock market.

And so to earn money from the stock market, you have to spend time to learn and understand it and stay away from Stock Market Fraud and Scams.

I hope that after reading this post, you will stay away from Stock Market Fraud and Scams and will not blindly trust anyone else in the matter of investing your money.

You can comment your suggestions or questions below.

Thank you for reading the post at the end.

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