MANILA, Philippines – The Philippine Stock Exchange, Incorporated (PSE) has advised the public to be cautious in dealing with individuals who are not licensed to solicit funds for stock market investments.
PSE President and CEO Hans Sicat said in a statement on Tuesday, December 8, the local bourse is alarmed by reports of unscrupulous practices to scam potential stock market investors.
“These practices not only cheat the victims of their money but also unduly stains the reputation of the stock market among retail investors,” Sicat said.
The PSE reminds those looking at investing in the stock market to open their own account with PSE-accredited brokerage firms and to transact only with employees of their chosen brokerage firm.
To attract potential victims, perpetrators of scams can make it appear that opening an account with a broker is a complicated transaction, and that the process can be made easier if the investment is made directly in their account.
The exchange is also asking the public to be wary of investment solicitations that offer share prices at discounted prices, as some of these schemes may include offering supposed shares of employee stock option plans.
“While it is true that some employee stock option plans may be offered at discounted prices, the PSE approves these provided their distribution is confined to employees of companies offering the plan as part of their benefits,” Sicat said.
He also advised to always ask for a receipt – that must be issued by a licensed broker – when making investments in the stock market.
Too good to be true
The public should never believe in solicitations for stock market investments that guarantee returns on investment, PSE warned.
While the Philippine stock market has provided compelling returns in the past years due to the positive corporate and the country’s economic performance, the public must understand that share price movements cannot be guaranteed, the local bourse said.
All information about PSE-accredited brokerage firms are posted on the website of the exchange.
If you suspect of an investment scam, or have questions on how to invest, call PSE at +63 2 819-4100 or email email@example.com. – Rappler.com
Trap image via Shutterstock