“PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted shares from a company at a specified price. The company agrees, in turn, to file a resale registration statement so that the investors can resell the shares to the public. To the extent that they increase the supply of a company’s stock in the market, PIPE offerings can potentially dilute the value of existing shares.
Look Out for High-Yield Investment Program Scams
Our recent Investor Alert warns investors that websites promoting High-Yield Investment Programs are likely scams.
Would You Invest in HoweyTrade?
Does it look more like a legitimate investment opportunity or an investment scam? What red flags can you spot, if any?