How to identify illegal securities activities? Always remember the 'four looks'. Recently, there have been some illegal securities activities that disrupt investors' normal investment behavior and cause unnecessary losses to them. What is illegal securities activity? How to identify illegal securities activities? Today we will reveal it to everyone.
What is illegal securities activity?
Illegal securities activities refer to the issuance and trading of securities that should be approved or regulated by legal authorities and subject to legal supervision without approval or authorization.
There are two main types of illegal and criminal activities: one is illegal issuance of securities, which refers to the act of publicly or indirectly issuing stocks without the approval of the China Securities Regulatory Commission. The second is illegal operation of securities business, which refers to engaging in securities business such as stock underwriting, brokerage (agency buying and selling), securities investment consulting, etc. without the approval of the China Securities Regulatory Commission. Companies or individuals engaged in the above illegal securities activities often use advertising, telephone, Internet, pyramid schemes and other means to lure investors into buying original shares and stock certificates of unlisted companies or joining securities investment consulting members.
How should investors identify illegal securities activities?
Take a look at the business qualifications
The securities industry is a franchise industry, and according to regulations, conducting securities business requires approval from the China Securities Regulatory Commission and obtaining corresponding business qualifications. Institutions that engage in securities business without obtaining the corresponding business qualifications are illegal institutions. Please do not deal with such institutions to avoid being deceived.
If investors want to know whether a company is approved for public offering, they can check the administrative licensing information column on the website of the China Securities Regulatory Commission (www.csrc. gov.cn), and also log in to the websites of the Shanghai Stock Exchange (www.sse. com. cn), Shenzhen Stock Exchange (www.szse. cn), and Beijing Stock Exchange (www.bse. cn) to inquire about specific information on new stock issuances; If you want to know whether a company or individual has the qualifications for securities and futures business, you can log in to the website of the China Securities Regulatory Commission, the China Securities Association (www.sac. net. cn), or the China Securities Investment Fund Association (www.amac. org. cn) to check. In addition, the National Equities Exchange and Quotations (NEEQ) Limited Liability Company is also a national securities trading venue approved by the State Council. Investors can log in to its website (www.neeq. cc) to inquire about securities companies and listed companies that have the qualifications to host securities brokerage business.
Second Look at Marketing Methods
When conducting securities business activities, it is necessary to comply with the requirements of securities laws and regulations on investor suitability management. Legitimate securities operating institutions generally use cautious language when promoting their business, and will not exaggerate or falsely advertise. At the same time, they will fully disclose business risks as required.
However, most criminals take advantage of investors' mentality of "getting rich overnight" or being eager to turn losses around, often using exaggerated, provocative, or eye-catching promotional language, often calling themselves "teachers" or "stock gods", attracting investors with statements such as "buying at the limit up", "recommending dark horses", "providing insider information", "guaranteed profits without losses", "guaranteed listing", "one-on-one expert guidance", "connecting with private equity", etc. Securities and futures investment carries risks and cannot guarantee a steady profit without losses.
Check the remittance account three times
Generally speaking, the purpose of illegal securities activities is to defraud investors of money and obtain illegal gains. To achieve this goal, criminals often resort to various sales tactics such as discounts, promotions, frequent debt collection, and creating a sense of urgency, urging investors to transfer funds into their controlled bank accounts as soon as possible.
Legitimate securities operating institutions can only conduct business in the name of the company and can only open bank accounts in the name of the company. They will not use personal accounts or non institutional accounts to receive payments. Investors should be particularly cautious in the remittance process. If the receiving account is a personal account or does not match the name of the institution, investors must not remit money to it.
Look at the Internet URL four times
The website addresses of illegal securities websites often use letters and numbers with no special meaning, or transform or add letters and numbers based on the website addresses of legitimate securities operating institutions. Investors can check the websites of legitimate securities operating institutions through the China Securities Regulatory Commission, the China Securities Association, or the China Securities Investment Fund Association. Do not log in to illegal securities websites to avoid falling into traps and suffering losses.
Comprehensive content from the China Securities Association and Ping An Fund Micro Vision Industry
