PSE cautions public on investment scams

The Philippine Stock Exchange (PSE) has urged the public to put their money on wise investments and not fell victim to seemingly attractive get-rich-quick schemes that usually comes in the form of networking marketing concept.

PSE president Francis Lim said that hard-earned money should be put in legitimate and wise investments such as in stocks, so that it will not go to waste in the pyramiding scams, of which several are operating in the country.

He emphasized that some bogus investments come in the form of network marketing. He urged the public to be vigilant in choosing their investment instruments.

"Stocks are viable investment instruments. It is not that complicated. It provides better returns," Lim said in his recent visit to Cebu to lead the 2nd PSE roadshow, which was aimed at revitalizing the local capital market here.

He said putting the money in stocks also provides higher returns, than putting the money in the bank. The public should be warned and be vigilant where to put their money for investments.

In line with the government's continuing efforts to keep Filipinos from being victimized by pyramiding, or network marketing scam, Lim said PSE is now on its active mode to offer stocks as an alternative and better investment instrument, together with mutual funds, among others.

Lim convinced Cebuanos to invest in stocks, rather than in other "illegitimate" investment channels, dismissing general impression that stock investments is only for wealthy individuals, and getting into stock investments is complicated.

"Going into the stock market, as investor, is not that complicated," he reiterated.

He mentioned that in China, wherein the capital market is only 13 years old, about 83 million Chinese are investing in the stock market.

In the Philippines on the other hand, where the capital market has been in existence for decades, not even one percent of the 88 million Filipinos invest in the stock market.

Because of this weak capital market investment interest in the Philippines, Lim said PSE is going out of its way to reach out to investors across the country.

"We want you to earn more and invest in the stock market," Lim told Cebuano participants during the roadshow attended by members of the academe, government sectors, business organizations, employees of private companies, among others.

In Cebu, there are several stock brokers, like the Abacus Securities, and others, that could help investors go into stock investments, he said.

Besides, the availability of online-trading can be an easier channel for investors to trade in stock market, via Internet.

Also, during the half-day stock market roadshow in Cebu, PSE made emphasis on the benefits of companies that will go into Initial Public Offering (IPO).