Beware of super bargains online and investments with higher than market return: expert
16:53
Engaging in investment activities that will bring us a much higher rate of return than in the bank is usually a scam, as Dr. Piotr Maszczyk of the Warsaw School of Economics warns. The economist shared some advice on how not to be cheated while making purchases or investing over the Internet.
The economist stressed that we should not forget that the Internet is full of people who want to take advantage of us, and we do not have the opportunity to see or touch the item as we do in a store. We are mostly doomed to a photo or description. This should make us much more careful when shopping.
Therefore, Dr. Maszczyk pointed out that when taking any investment decisions or making purchases one should remember that we may find ourselves in a situation of information asymmetry, i.e. we may know less than the other party to the transaction.
"What is more, the other party may use our inferior knowledge to dispose of our property in an unfavorable way. Therefore, one should always remember about it and take actions to equalize the level of information," the expert explained.
