To tell if a stock is credible, you should do a little research and investigate the company itself. Many e-mails belong in the junk folder because they are not credible. See if the company is legitimate and what kind of work they do.
There are special programs put into computers now that help you to determine whether something is a scam. See if the e-mail that was sent to you is verified. Check to see if the e-mail presents as a professional. As a universal rule, you should never purchase stock from someone you do not know or come from an e-mail you were not expecting.
No reputable business operation issues many shares without an increase in its resources. You also may want to verify the e-mail address.
For example, if an e-mail says it comes from an address that links to Apple, there are ways to check and see that it did come from Apple.
The rule of thumb for authentication of any e-mail would be true for stock or peanut butter, and your first question would be: Do you realize who sent you the e-mail, and is the sender address correct and the e-mail header? If you don’t feel comfortable about the e-mail, there could be valid reasons. If there is a link up in the e-mail, do you recognize to link address? Do the sender’s domain and link match the website of the sender? Did you expect to receive an e-mail from the stockbroker, and is their e-mail address correct? Ensure that the body of the e-mail discusses any previous plans and conversations and that it does not ask for payment with a credit card. Beware of a promotional e-mail from a stock company you do not recognize asking you to click a link you do not recognize; beware and do not click.
R. Barnes, Professional Gamer, Graduation, Oakland
Answered Dec 23, 2020
There are different companies that are trying to get noticed online by doing some email marketing. This explains why you may sometimes get some emails from companies that are promoting products that you may find interesting.
For example, there are some that are able to send you emails because you have signed up to get to know their products better. Of course, there are also a few ones that were just able to send you emails because you have checked their website at one point. If the emails go directly to the spam or junk folder, they may not be worth checking out anymore.
There are a lot of companies that would try to target different people through their emails. At times, you will know exactly what you are going to get because you have signed up for the newsletter and the promotions yourself.
At times, you are just targeted. Let us say that you are being sold some stocks through email. To know if you are getting from a legitimate company, you can check the company itself. Are they known for selling stocks?
Do they have a good reputation? Aside from that, you also need to check if the email that you are getting comes from the company itself. Is the email verified? It can be a bit shady to purchase stocks from companies whose emails are sent directly to your spam or junk folder.
Nowadays, we receive several emails and ads. A lot about advertising but just a small number of them is credible. A whole lot of them is false and scam. Many are looking for innocent people. They will dupe and scam. For mail recipients, some have good data and claims to support the stock they are promoting.
However, there are a lot more that are just fraudsters. There are some of them that can be spotted easily, but some are so skilled in the fraudulent practices that you may have to watch out for signs and red flags. In a bid to differentiate fraudsters from genuine ones, you need the test for credibility.
To tell if the email promoting stock is credible, you need to look out for the mail delivery, does it present quality over quantity. Also, in the body of the mail, watch out for the references, previous and present clients’ reports, and reviews. Check out for their awards and accolades.
Junk e-mail and spam over the internet are rampant as scam artists spread incorrect information about Microcap stocks. You should in no way buy a stock based on an e-mail from someone you do not know. It would be best if you were especially circumspect with stock promotions.
The warning signs of Microcap fraud include: The SEC banned public trading of the security or other securities endorsed by the same promoter. If there is a rise in stock price or trading volume connected to promotional activity, promotional activity announces events that ultimately do not occur.
No real business operations company issues many shares without a corresponding increase in its resources or constant change in company name or type of business. You should always read current reports that the company has filed with the SEC.