My broker was speaking of the AIDS epidemic and how much work was going into it with the laboratories and so on. And this particular company, working so close with it . . . And he said it was absolutely a sure thing . . . It would just continue to rise. I asked the broker not once but three times to send me some information.
Some cold callers wait before turning up the heat.
They assure me that all they want to do is pass along some information concerning their firm and track record, and will get back to me if and when something hot' comes along. After you take the bait, they may pressure you to invest in small, unknown companies with little or no earnings. These stocks tend to be very risky and thinly traded, leaving more investors with losses than profits. Although they may not say so, dishonest brokers who push you to invest in a small, unknown company often work for firms that own large amounts of the stock. Their firm may have been involved in the company's initial public offering.