FCMC warns corporate shareholders of potential scams

People likely to be stock market scams for shares of companies listed on Nasdaq Riga, which have not written off their shares and which are still held by Nasdaq CSD SE (the old name – the Latvian central depository) in the initial register, offering to these owners to buy back shares even at several times lower price than their true market value.

The FCMC is concerned about the protection of investors and the reliability of the financial instruments market, warns against a possible system of fraud and invites the shareholders of these companies to pay particular attention to these offers after having determined the shares of the corporation. In addition, if the shares are held in the original register, the shareholder must ensure that the shares he holds do not pay him dividends.

The alleged fraudsters try to misunderstand the market value of the real shares and conceal the fact that the shares have accumulated dividends, Convinced of the sale of shares by offering to pay a price well below their market value.

Shareholder Recommendations for Stocks:
• Before closing a sale, check the stock price to evaluate the value of the offer. If the shares are held in the Nasdaq CSD SE's default register, make sure that there are no accumulated dividends paid by the company and calculate their amount (dividends can also be found on the site Stock Exchange Web) • If you have any questions about the sale of shares of the company, it is always best to contact your bank or investment dealer or FCMC
• If you find that you are You are a victim of such fraud, we invite you to contact the State Police.

Potential Fraud Scheme
The CFMC has received information on several such transactions that show signs of fraud. None of the potential victims has yet used the CFMC

The information system available to the CFMC is as follows: a person asks shareholders who own shares during the privatization period, including personal visits to their place of residence or call on the phone and try to convince a variety of arguments on the sale of shares, offering a price significantly lower than their stock market value. The shareholder is offered to settle the transaction immediately, to go to the nearest bank and to fill in all the necessary documents to complete the sale of the shares or to go to the notary, draw up a sales agreement and the power to to perform the transaction. After that, a potential scammer can sell them at a much higher price and get stock dividends written off.

Here is an example of the consequences of a shareholder accepting the offer:
L & rsquo; Buyer convinced a person to sell 200 shares, offering about 1, 00 euros per share, so the person only gets 200 euros. The person registered in the initial register has 200 shares, for which a total dividend of 2,000 euros has been accumulated. The stock price of these shares is about 10,00 euros per share. Thus, if this person had written off the shares in his name and sold them on the stock market, he would receive a dividend of 2,000 euros and 200 shares could be sold for 2,000 euros, which would be 4,000 euros.