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Promissory notes are a form of debt that companies sometimes use to raise money. They typically involve investors loaning money to a company in exchange for a fixed amount of periodic income. Although promissory notes can be appropriate investments for many individuals, some fraudsters use promissory notes to defraud investors, especially the elderly.
For tips on how to avoid promissory note scams, read Broken Promises: Promissory Note Fraud. For more information, the Financial Industry Regulatory Authority (FINRA) website has an alert on Promissory Notes Can Be Less Than Promised.