Stock Markets Exposed
Is this Stock Trading or Mutual Funds?
My mother is a real estate broker for an extremely large brokerage company. It's actually the 4th largest in the World. She told me that just like Microsoft along time ago, her company is getting ready to sell within 2 years because the CEO and Founder is retiring. She said that they are offering 1000 Free shares to all the employees, and any friends and families of employees who become members free shares also before going PUBLIC WITH THIS. And they predict it will be worth atleast $20-$30 a share. SHE wants ME to sign up as a member so I will get 1000 free shares, because if I sign up as a member under her, she will get an extra free 1000 shares on top of the 1000 free shares shes already getting. Now my mom has sign up my dad, and 22 others people already. I heard mutual funds are better than stock trading. Which one is this? Should I sign up? I have by tonight 7pm PST to sign anyone I know up under me to gain 1000 free shares per a person I sign up ,so please tell me asap.
Public Comments
- It depends on whether the "brokerage company" is incorporated as a trust or a company. Judging from what you have written, it sounds like a company. If it was incorporated as a trust, then it would have units rather than shares and it may or may not be listed on the stock exchange. "Going public" generally means listing on a stock exchange - both companies and trusts can list (depends on the country). Many Mutual Funds are not listed because they hold a portfolio of listed stocks - since the value of the portfolio can be calculated, the value of the units can easily be calculated too. Mutual Funds and Unit Trusts are basically the same thing (although there may be subtle differences in some countries). The reason why Mutual Funds are better than stocks is because they own a wide range of investments - all your eggs are not in one basket. In your case, you should take up the shares if they are free. You have nothing to lose. The whole scheme sounds a bit dodgy though. As you have described it, they could be giving away millions of free shares. Why would the owner do that?
- Something does not sound right. Why are they giving away shares for free. I might understand giving it to employees, but spreading to relatives and friends. Something does not sound right.
- Agreeded I would stay away from this perfect target for an SEC investigation.
- Free stocks for everybody that signs up? That sounds more than unbelievable. The company probably isn't into charity for everybody, and that's what it is when they are giving it away for free. What's the catch?
