1. easily manipulated stock prices
   less likely to be noticed by regulators
2. few people know enough about them to realize they are overvalued

Since they feature low trading volume, a small increase in the number of shares purchased can easily raise the stock price. Then the scammers can sell the stock and make a quick profit.

1. about $750,000
   between $85 million and $125 million
2. billions of dollars

Scams come in many different sizes and types, but they mainly combine promises of wealth, guarantees of low risk, and an insistence on secrecy.

1. The perpetrators prey on people within a specific community or group.
   The scammer victimizes his or her relatives.
2. The victims don't even realize they have been scammed.

People tend to trust those with whom they have something in common. Thus, people running affinity scams focus on hobbyist, religious or ethnic groups.

1. International Postal Reply Coupons
   U.S. Government Bonds
2. stock certificates of a small textile company

In early 20th century Boston, Ponzi scammed investors after finding a theoretical hole in the international postal system. His scam earned him $10 million.

1. paying investors dividends from the purchases of other investors
   selling shares in elite foreign banks
2. sales from unlicensed agents

Named for the famous perpetrator of such a scam, Charles Ponzi, such schemes inevitably fail since they have no source of real profits.

1. prime bank scams
   promissory note scams
2. commodity scams

The lure of a prime bank scam is the belief that you can get in on an investment that only rich people could otherwise invest in. The only problem is that these "prime banks" don't actually exist.

1. because people don't want to miss out on a money-making opportunity
   because the scam artist is more convincing when he speaks with urgency
2. because these emotional pleas make the investor overlook the obvious risks

In addition, the scammer benefits because if people invest on the spot, they will not have a chance to investigate the true value of the investment.

1. a document that outlines the details, risks and upside potential of an investment
   an outline of the past returns on a specific investment
2. an investment opportunity that is more risky

A legitimate investment opportunities should have an official prospectus that clearly spells out the risks and potential reward of the investment.

1. overseas investments
   high value stocks
2. investments in financial institutions, such as banks

If the investment opportunity is overseas, it may not have the same regulatory restrictions, and thus might be riper for manipulation.

1. It may be a fake profit in order to encourage further investment.
   It may be a sign of higher taxes to come.
2. It may indicate that you are involved in a Ponzi scheme.

Often scammers will pay out a small return quickly, to give you more confidence in your investment.