|Thursday, November 15, 2001
Nancy A. Condon
NASD Alerts Investors on Terrorism and Anthrax Investment Scams
Washington, D.C. — The National Association of Securities Dealers, Inc. (NASD®) today issued an Investor Alert cautioning investors of investment scams that cropped up around recent Anthrax scares and other terrorist-related events. Recommendations of stocks of companies that make defense, anti-terrorism, or biological detection products have increased in the past few weeks. While some of these claims may be true offers, many could turn out to be fraudulent hoaxes designed to inflate the price of the stocks. Recently, The Nasdaq Stock Market® and the Securities and Exchange Commission (SEC) have halted trading of companies because of questions regarding the accuracy of the companies' claims.
The Investor Alert, titled "Fears of Anthrax and Terrorism Spawning Investment Scams," is available on www.nasd.com. The Investor Alert explains how to spot possible investment scams, and how to avoid being drawn into a potential hoax.
The Alert lists some of the claims to look out for that may be included in unsolicited faxes and emailed spam:
The Alert also provides some pointers on avoiding a potential scam:
Investors can view Investor Alerts, obtain more information about NASD and NASD Regulation, as well as the disciplinary record of any NASD-registered broker or brokerage firm. Disciplinary records of NASD-registered brokers or firms can also be accessed by calling (800) 289-9999.
NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, The American Stock Exchange®, and NASD Dispute Resolution, Inc. are subsidiaries of the National Association of Securities Dealers, Inc. (NASD®), the largest securities-industry self-regulatory organization in the United States.