Chapter 54. More investment scams

Promissory notes

Corporations legitimately issue promissory notes as a way to raise money to operate their businesses. Through a promissory note, a corporation borrows money from the purchaser of the note and agrees to pay interest on the money borrowed. The loans are paid back over a period of months or even years.

Even legitimate promissory notes are far from a sure thing. If the company borrowing the money comes upon hard times, the lender may not be paid. In any event, genuine corporate promissory notes are rarely available to anyone other than large corporate lenders and sophisticated, experienced investors. But this doesn’t stop scammers from marketing to the general public promissory notes issued by companies ...

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