No. of Recommendations: 2
Hi, Some years ago Motley Fool had a service that recommended global stocks. One pick was Tom Online, which made such things as apps for mobile phones, as I recall. It was based in China. Problem was, the majority owner of Tom Online owned another company, and his other company made a low-ball offer to buy Tom Online. Since the owner of the buyer was also the majority owner of the seller (Tom Online), the deal was approved. We lost money.

I don't want to say this was the worst investment, but it was the most frustrating. I wrote to NASDAQ and asked how a company listed on NASDAQ could get away with such nonsense. NASDAQ responded it couldn't really police the companies listed on NASDAQ for this sort of thing. Anhow, the primary listing was in China, and they were Chinese companies, so NASDAQ couldn't do much even if it wanted to.

My take-away was to be cautious about investing in countries where the rule of law isn't especially strong. That's not to say the US is without problems (Enron), but at least shareholders in the US could file suit in federal court to stop a dubious deal.
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