Why do investment companies run away?

There are many reasons why investment companies run away. First of all, some irregular investment behaviors have led to huge losses. In order to pursue high returns, some investment companies will adopt high-risk investment strategies and conduct frequent transactions in the market. Once the market fluctuates, the company's risk can't be controlled, and the capital chain will break. Secondly, some dishonest investment companies will attract investors with high returns and trick them into investing in the company. Finally, under various pretexts, investors' funds could not be recovered and ran away.

Running away from investment companies is not only harmful to individual investors, but also has a serious negative impact on the whole society. On the one hand, the huge funds obtained by investment companies come from the general public. Running away not only destroys the social credit mechanism, but also weakens people's confidence in the stability of the financial market. On the other hand, the flight of investment companies will also trigger a series of chain reactions, which may trigger large-scale capital flows and aggravate market volatility.

Investors need to avoid some unnecessary risks by choosing formal and compliant investment companies. In fact, a formal and compliant investment company should have perfect corporate governance mechanism, clear business scope, strict risk control measures and powerful supervision and supervision means. Investors should know the company's credit history and reputation, and make full investigation and risk assessment before investing. At the same time, in addition to the professional knowledge in this field, we need to improve the investment quality and accumulate certain market experience, so as to better grasp the market pulse and reduce our own investment risks and losses.