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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