Nigeria: How to Identify Fake Finance Houses
How do you explain investing in a firm that is not properly licensed by the
Securities and Exchange Commission and yet offers you ridiculous returns
in stocks such that not even the best and he biggest licensed stock broking firm can ever think of making talk less of offering you? Abayomi Obabolujo, CRO, Stocks Watch Magazine.
I got really excited when I read the April 29, 2007 edition of Stocks Watch. The Chief Research Officer of the reputable stocks magazine, Abayomi Obabolujo, wrote an enlightening essay on how to identify fake finance houses. What really got me going was that most of the points he made seemed to correlate with what I highlighted in my write-up NOSPETCO: Trumpeted on the Aegis of Lack of Electricity. The message he was trying to pass across is so important, I have decided to replicate it here. Brace yourself; you are in danger of being a little more financial literate!
Excerpts from the essay; the real meaning of investment-II: Identifying Fake Finance Houses by Abayomi Obabolujo, CRO, Stocks Watch magazine
The System:
To my mind, the system to which your fund is being sent to create more of itself should be plain and simple to understand and not a kind of abracadabra that people and firms say they do to generate the kind of interests they offer. For example, when you give your money to a stock broker for investment purposes, you sure know it is for the stock of a specific company, whose business is well defined and proven. If your fund/deposit is in a bank, we all know what they do, including round tripping (when it was fashionable) and the excess charges, import and corporate financing and all the rest but how do you explain giving your money to an institution or someone who says he is into oil and gas without a proper license and yet offers
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