Beware of purchasing any stock whatsoever from a stock broker, unless you have investigated that broker, and are sure he is not a rip off. A fool and his money are soon parted.
The scam: Fraudulent brokers usually own the stock they are selling. The sell as much of this particular stock they can to as many people as possible, thus driving the price up.
The broker then shorts the stock, and the, since the price of the stock was artificially inflated, the price falls like a rock. If you place sell stop orders with the fraudulent broker, he/she will ignore them.
When the stock price falls, you lose money. But because the broker has shorted the stock, he buys replaces your stock with the shorted shares and all is kosher, except you have lost money and the fraudulent broker has made money.
The above is a simplified explanation of a complicated fraud. Therefore be aware of any stock broker, unless you can be absolutely sure, by your own investigation, that is is not Mafia owned or a fraudulent broker.
Not every broker is a fraud, but many churn accounts and defraud customers in order to earn money.
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