2. Anyone Borrowing Public Money Should Not Be Owned and Operated By A Closed Group

Check twice before borrowing from the enterprises that are owned by a small group of people, whose accounts and accountability is not made public, but they proceed to raise deposits from the public. The weak laws of the country today allow private operators to raise money from the public.

Investors should refuse to park their money with private firms. A company that goes public puts its accounts up for everyone to see. Before borrowing money from the public, the firm should have risk-taking equity investors outside the promoting group.

3. Returns Generated Should Reflect In the Balance Sheet

Firms those have raised money by telling investors that they would invest in teak plantations, emu farms, shrimp farms, orchards and agri plots, would become money spinners in the future. It is seen that buying behavior is highly influenced by people than by processes. Many firms use the benefit of mascots, advertising, endorsements and brands to build credibility. Investors should take some time to ask where their money is going to be invested and how it will generate returns. Without getting involved in such basic investigation, investors will remain vulnerable to scams.