Phew, there sure have been some stinkers on the JSE
Pity the poor folks who bought into the overblown promises of investment company Ecsponent
There is one market adage that retail investors repeatedly overlook: “If it seems too good to be true, then it is probably too good to be true.”
Every so often investors in and around the JSE are offered investment instruments that promise impossibly generous returns. There is seemingly never a shortage of punters tempted by richer returns … even though it is rare that the outcome is not third-degree wallet burns.
This week’s admission by investment company Ecsponent (https://www.sharenet.co.za/v3/quickshare.php?scode=ECS) – that it was unlikely to be in a position to pay dividends or redeem certain tranches of its high-yielding preference shares – is likely to be another expensive lesson...