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Post on 20-Jun-2015
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Hello ^__^
Investor Exploitation
Investor
O Definition: Someone who hands over
money in order to gain economic refunds.
Exploitation
O Definition: Making self benefiting by using
others’ money
Investor Exploitation
O Definition: Taking advantages of money
given by someone who confides money
over to a specific business.
Types of Exploitation
O Business Owner x Investor (AKA Share
Holder)
O Investor x Property Broker
O Investor x Buyer x Property Broker
Business Owner & Investor (aka Share Holder)
Misusing the money
Business Owner & Investor (aka Share Holder)
O The money supposed to be used for the
business
O But the owner used to renovate his office
(high class office), buy luxurious cars, or
maybe cars?
O Put the money into his own POCKET
Business Owner & Investor (aka Share Holder)
O Check the background of the business
owner
→ Financial status
O Common law in Malaysia
→ Law 14A Criminal Acts (Corruption)
→ Protects investors
Investor & Property Broker
O Commision
O Down Payment
O Fees to prepare agreement/documents
Investor & Property Broker
O Unreasonable commission/ down
payment
O 2%
Investor & Property Broker
O Check background of the property agent’s
company
O Pay cheque straight to company instead
of the broker
Investor, Buyer & Property Broker
LAND
Investor, Buyer & Property Broker
Investor, Buyer & Property Broker
O Government should take the land if owner doesn’t pay tax for a limited time (3-5 years)
O Auction to the public (Bargain)
O In a way, government can earn money
O Fair and square to everyone
NEGATIVE EFFECTS!
O Lose IMAGE → Mistrust from workers and
investors
O Get sued by investor → Go jail or
bankrupt
O Company shut down (financial problems)
CONCLUSION
Investing carries benefits, but it also has it’s own risk. Therefore, we should plan wisely before investing your
money.
Sources
O Peterson, R., & Murtha, F. (2010`). Market psych. Canada: John Wiley & Sons, Inc.
O Franks, J., & Mayer, C. (1989). Risk, regulation and investor protection. New York: Oxford University Press Inc.
O Moy, S. (2013, October 12). []. Investor.
O Thong, S. (2013, October 20). []. Investor.
O Henning, P. (2012, July 23). Finding recourse when investors are cheated. Retrieved from http://mobile.nytimes.com/blogs/dealbook/2012/07/23/finding-recourse-when-investors-are-cheated/
O Kahraman, C. B. (2011, January 15). Do mutual fund brokers exploit investors through their fee schedules?. Retrieved from http://www.hhs.se/DF/Seminars/Documents/110128jmp_bigekahraman.pdf
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