Elina asked in Business & FinanceInvesting · 2 months ago

Is it legal for companies to take your money , that was meant as investment if they know from the beginning that you are gonna be screwed?

11 Answers

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  • 2 months ago

    It depends on what you mean. If you invest in something hyper speculative and they let you know beforehand its highly speculative and it doesn't work out then (in theory) its legal. If the company misrepresents the risks and there is no chance of making a profit, such as a Ponzi scheme, then its fraud.

  • 2 months ago

    If it is a scam, of course not.  If it is a legitimate investment, then they would not know from the beginning that you are going to be screwed.

  • 2 months ago

    You are expected to understand what you are investing in before you lay out any money. All investment carries some risk of loss. Any reputable company will point this out to you. You are only 'gonna be screwed' if a disreputable person commits fraud.

    Many people lose money in stocks, bonds, commodities, real estate, art, collectibles, you name it. Nobody 'took' your money - you GAVE your money. If what you bought loses you money when you sell it, many times, the company is acting as the middleman or broker and is paid a commission on the buy and on the sale. The money you lost disappeared, because that's what happens with investments that go down in value.

  • 2 months ago

    Yes it is very much so.

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  • Judy
    Lv 7
    2 months ago

    They DON'T know that.

  • 2 months ago

    Are we talking about business risk...or fraud?

  • Anonymous
    2 months ago

    You really are too stupid to post. So stop.

  • Amy
    Lv 7
    2 months ago

    Yes, unless they are certified as a "fiduciary".

  • Anonymous
    2 months ago

    Taking someone's money without consent is theft (unless of course you're the government).

    Companies are required to issue a prospectus to prospective investors.  It's up to the investor to evaluate the potential risks/rewards of any particular investment.

    There is a difference between an investment legitimately going south and a company that defrauds investors.

    You have zero information/details. 

  • 2 months ago

    No one here has any idea as to what you are talking about.

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