The WORST Legal SCAMS Out There! Don't Fall For It!!
🎰 The Lottery 🎰
Most of us have seen a massive lottery jackpot, bought a ticket and daydreamed of winning. But most people don’t think about where that lottery ticket revenue really goes and assume it all goes towards prizes. That’s not true at all. With the EuroMillions just 50% of that ticket price goes towards prizes. Also, to win that lottery the odds are a staggering one in 140 million. That means most lottery players are playing a game with not only poor expected value but with little chance of winning - they might as well be lighting their money on fire. Most lotto players have no idea of the odds of winning and assume that all the money from the ticket sale goes towards prizes.
⌚ Rolex ⌚
Let’s face it, Rolex’s are expensive status symbols so you could be forgiven for thinking that it was easy to walk into a shop and get one. You’d be dead wrong on that with waiting lists for some models hitting 10 years. That’s resulted in some second hand Rolex’s being priced at over double retail. Recently, one authorized dealer was accused of selling watches directly to the secondary market. Tight supply from Rolex has been what’s driven all this and that means that customers are being forced to pay extortionate grey market prices for their fancy watch.
💎 De Beers & Diamonds 💎
This goes back to the 19th century when De Beers got themselves the biggest diamond mine in the world. But there was a problem: mine owners knew that the value of their diamonds depended on their scarcity and demand. Lots of money started going out of business and that led to the creation of a monopoly company called De Beers Consolidated Mines LTD. Next, De Beers needed to drive up demand and they chose to do that in the US by executing one of the most successful marketing campaigns the world had ever seen. Watch my vid for more info on that!
🏦 PayDay Loans 🏦
Credit cards are super expensive ways to access credit with typical APRs of about 23%. However, with payday loans that can be as high as 1500%. Talk about taking advantage of the most vulnerable members of society.
📈 Share Buybacks 📈
Share buybacks are when a company listed on the stock market buys back some of its stock to increase the share price. Many companies in the stock market have been doing this for years. Some may say that shareholders are being done a favour given that dividends are taxed as income by most countries whereas capital gains are usually taxed less. But does this really make sense? That argument doesn’t make much sense when you consider that most shareholders hold those shares in non-taxable pension funds. Studies have shown that some executives time corporate news flow to coincide with times when their own personal equity vests. That means they can pump up the price using share buybacks and sell into people like you and me at inflated prices.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.