Sample Business Studies Essay Paper on Investment Opportunity Scams

Investment Opportunity Scams

Investment opportunities that claim to offer more than the normal market values end up as scams. Fraudsters always count on one not investigating before investing. A once in a lifetime investment opportunity with high returns is most likely a scam because it promises invisible riches which sound too good to be true. In this case, a comparison of the promised yields with the current returns will lead to a different outcome from the one offered. The catchphrase is always high returns and it involves one risking a substantial amount of money hence an outright sign of fraud. 

The guaranteed returns never end up well since every investment carries some level of risk. This would be reflected in in the rate of returns one expects to receive. Safe money retains a low return likelihood which means that a promise of high returns entails high risks that could lead to loss of the investment hence a scam. Most fraudsters put a lot of effort into trying to convince investors of guaranteed high returns before even explain the full magnitude of the investment.

The once in a lifetime phrase puts investors under pressure making them believe that if they miss the opportunity, another one might not be available. This keeps one on their toes trying to liquidate whichever assets they own in an effort to get rich quick and live the dream. This kind of pressure is a red flag and it means that the probability of the opportunity being real is minimal. When making a decision for an investment, there is no valid reason behind making a quick and rush decision. It is always important to consider all risks and probabilities before. However, fraudsters never leave room for this hence the reference to a once in a lifetime opportunity to make the victim feel like they are missing out on something big.