The latest risk coronavirus poses to investors is 'substantial' fraud, SEC warns
There is a"substantial potential for fraud at this time," according to the SEC, adding that many fraudulent schemes present themselves as research reports. newfound optimism
after last week's sessions left stocks battered. Still, it's the latest risk in the pile of worries investors have faced as they try to gauge the impact coronavirus will have on global growth, and their portfolios. The smallest publicly traded companies are more vulnerable to third-party fraud schemes, because there is limited public information on them, the SEC said. Investors who buy shares in companies based off of false or misleading statements the company itself makes may never be able to regain their lost funds, such as in instances where the company is suspended from public exchanges.
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