Question

6. Choose the best answer.

Which statement is NOT a common characteristic of scams?
Investors are pressured to make an immediate investment.
The promoter promises high returns and low risk.
O The promoter claims to be doing the investor a favor by sharing secret information.
O The promoter is not licensed to sell securities.
The promoter only accepts credit card payments.

Answer 1

In scams, the promoter may pressure investors, promise high returns, claim secret information, and sell unlicensed securities, but the mode of payment does not determine if it is a scam.

Step-by-step explanation:

A scam is a fraudulent scheme or dishonest scheme, typically designed to deceive individuals and extract money from them. While all of the given statements are common characteristics of scams, the statement that is NOT a common characteristic of scams is: The promoter only accepts credit card payments.

In scams, the promoter often pressures investors to make an immediate investment, promises unrealistically high returns and low risk, claims to be sharing exclusive secret information, and may not be licensed to sell securities. However, the mode of payment does not directly determine whether something is a scam or not.

Learn more about Characteristics of scams