A couple of weeks ago, Gary, a BCSC inquiries officer, was a guest on Shushma Datt’s afternoon talk show, Gup Shup. Gary, who has been listening to Shushma since he was a young boy, spoke about our Be Fraud Aware public awareness campaign. He also talked about the warning signs of investment fraud, and the impact it has on individuals and communities.
Gary’s interview, which was in Punjabi and English, prompted a number of calls from listeners. He heard from a person who had been affected by an investment scam, as well as someone who was concerned about an investment she had bought. Other callers asked common questions that Gary fields in his daily work.
For those who didn’t hear the interview, I thought it would be useful to share the answers to listeners’ questions. These questions come up at InvestRight seminars and presentations too.
What is a security?
Most people think of a “security” as a stock or bond that trades on an exchange, like the Toronto Stock Exchange. This is correct.
However, many other investments are also a “security”. Basically, if you invest in a business, including private companies and limited partnerships, which depends on others to make it successful, you are purchasing a security.
Before you make an investment, it is important for you to understand it. The About Investments section of InvestRight is a good place to start.
What is Forex and how is it traded?
FOREX stands for Foreign Exchange. The forex market, also referred to as the currency or FX market, is basically the changing of one currency for another by simultaneously buying one and selling another. Your profits and losses depend on the fluctuations in the exchange rate between the two currencies.
Forex is complex, volatile, and highly risky. Success in speculating on how numerous factors influence a currency’s value requires an expert’s ability to monitor and interpret complex data.
Questions about Enforcement cases
Two callers asked Gary about enforcement cases that affected the Lower Mainland’s South Asian community. You can find out about historical or current cases by searching the names of the individuals on the BCSC website, www.bcsc.bc.ca.
Last week, the BCSC issued a panel decision finding four BC residents had perpetrated a “deliberate and well-organized” fraud in a Ponzi scheme that resulted in the loss of over US$10 million by more than 800 investors in BC and elsewhere. Media, CTV in particular, researched the case and found several victims who were willing to […]