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A Circular Issued by the Association of Banks in Jordan in 1999

The Association of Banks in Jordan does hereby wish to draw the attention of the public of the Jordanian investors who trade in shares and financial instruments via the Internet and forewarn them that they should be more careful and cautious in their such commercial dealings and to be acquainted with the extent of the risks sustained by their investments in the said fields and in particular, in those instruments that promise for a high revenue or those constituted of shares for which no thorough information are available for them regarding their issuing companies.

Hence, we wish that it shall be clear for the Jordanian investors that the absolute majority of such investments which promised revenue is higher than the rates of the revenue of the deposits includes risks that increase according to the declared amount of the revenue and mostly that the results tend to be a great loss in the capital.

 

Accordingly, we would like to draw the attention of the citizens that they should be careful and cautious before entering to any such investment for the purposes of maintaining their funds. Further, we would like to confirm the necessity to be acquainted with the risks related to the investmental instruments in which they shall invest and in particular, those instruments which promoters promise to realize a high and fats revenue at the same time.

 

In fact, investing in several financial instruments whether via the Internet or any other means require the sufficient knowledge related to the specifications of the investmental instruments aimed for investment, their risks, average of revenue, profitability, degree of liquidity, the factors that affect  their futuristic value, the issuing party and the extent of credibility of the said party. Therefore, we do hereby confirm the necessity that each investor shall obtain the information related to the instruments by which the investment shall be made and especially, the financial statements of the concerned company through its website on the Internet.

 

Finally, the Association would like to confirm not to rush to the investment in any financial instruments merely upon the claim that they promise for a high revenue and however, that it should be investigated about the issuer and its reputation as well as the promoter, its position held at the stock markets and the extent of its credibility.

 

   

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