There are a host of horrible ways to lose money out there, including penny stock scams that fleece you out of your money in a hurry or ill-advised investment networks that turn out to be Ponzi schemes.
It goes without saying that criminal investments are a bad idea. But sadly, there are actually a number of legitimate investments that can sometimes burn investors as much as (or even worse than!) the unscrupulous tactics of predatory investors.
Frequently, these ugly investments tend to be in the small-cap arena, trading for a few bucks a share and with a market cap in the hundreds of millions of dollars. They are just big enough to fool you into thinking they have a shot at success … but frequently end in tears.
Here are a few case studies in meltdowns this year, with five of the stupidest investments that traders could have made in the small-cap arena.