As someone who saw their investments go from $100+/share to less than a dollar while the company officers all walked away with millions (and not a thing anyone could do about it) I can see how it would be hard to tell the difference.
“As someone who saw their investments go from $100+/share to less than a dollar “
Well, that can happen with anything, but if you only has 1% of your nestegg in such company, you lost money, but you are OK. But people who went for the “big return” ignoring risks and put ALL their money in such a stock lost everything, but it’s their greed is to blame. What did you want, the government to guarantee everyone’s investments at 20% return per year? If you want 100% security, invest in T-bills.