How even a savvy investor falls prey to frauds

Even tech-savvy and careful investors who are watchful about corporate malpractices and keep track of the distress signs often fall prey to frauds, finds a recent study.

These investors end up tracking the wrong warning signs — meaning the warning signs they look for are clear only after it is too late to protect their investment, the study found.

“Individual investors get hurt if they own stock in fraudulent companies that cook the books, such as Enron. But we wanted to know how investors think about fraud and whether they try to protect themselves,” said lead author Joe Brazel, a professor of accounting at North Carolina State University.

The researchers surveyed 194 experienced, non-professional investors from 38 states about fraud and their investment activity.

Read more on this in the source site, after the first four paragraphs. Click.. here.

Source Credits: IANS

This entry was posted in 07. Comercio and tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave your comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s