COVID-19: investors are advised to exercise caution

COVID-19: les investisseurs invités à la prudence

The canadian securities administrators (CSA) have served as a warning for investors tempted by the high returns and who would make promising products or services related to the infection, the COVID-19.

“At the present time, there is no vaccine or natural health product approved to treat the COVID-19, or protection from it, and explains it in a press release Thursday. Caution should be exercised when a company claims to have a solution that helps to stop the pandemic of sars coronavirus.”

In all cases, it is recommended to do in depth research before investing in a company.

Among other strategies used, one speaks in particular of companies that rely on small companies “shells” that are publicly traded.

THE CSA gave the example of people who disseminate positive information, but false, prompting people to buy shares. Thus, the greater the number of investors buying shares, the higher the share price inflates.

“The fraudsters liquidate their shares quickly before the hype ends, which allows them to pocket a substantial gain, a-t-on explained. The share price plummets, and other investors suffer a loss.”

The CSA also report cases of fraud to the phone where people call in to try to steal investors ‘ money by making them fear for the purpose of obtaining personal information.

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