Select investors within the United States have grown hungry for a worthwhile investment that will give a return quickly. In this new market Chinese stocks have proven to be a very tempting investment to those who are promised quick returns. Unfortunately many of the Chinese stocks offered in the US have proven to be fraudulent, and as a result many Americans are losing money in stock scams. The chance to strike it big with a small investment has been a tool used by scam artists for hundreds of years, and in an ailing economy it is more effective than ever.
The best scams are those veiled in the possibility of making money legitimately, and those who are not especially well versed in stocks can be taken advantage of. This is why many criminals are now using backdoor methods to dump Chinese stocks onto the US market in an effort to inflate the value, and then dump the stock prior to being caught. Such scams are becoming more and more commonplace as Americans get wind of a prosperous China and want to cash in on it. This feeding frenzy of American desperation has incited many con artists to take up new strategies of coming between investors and their money.
The continued assault upon investors will likely result in more trouble for the USD on the online forex exchange. There has to be a measure of confidence in the marketplace where investors expect a certain measure of honesty where their money is concerned. There is enough risk present in the financial world without there being those who want to rig the system, and such rigging undermines the stability of the US economy and the USD. When there is no confidence or trust in the marketplace there can be a really large decrease in the amount of money invested.
The regulations placed upon the investment market are there to prevent any sinister deceit to be carried out by those who wish to earn money dishonestly. While there will always be risks where investments are concerned they are absolutely necessary to fuel growth in the economy. The honest and level playing field where investment is concerned must be maintained, without this attention to fairness the US economy and the USD will suffer greatly. There has to be more vigilance and an active effort to safeguard investors where scams such as these are involved, otherwise no one will want to invest.
By James McKee
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
