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A promissory note is a form of debt – similar to a loan– that a company may issue to raise money. Typically, an investor agrees to loan money to a company for a set period of time. In exchange, the company promises to pay the investor a fixed return on his or her investment, generally principal plus annual interest. While promissory notes can be legitimate investments, those that are marketed broadly to individual investors often turn out to be scams. Investors should carefully investigate the legitimacy of all promissory notes. The following are examples of such...
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Journal of Investment Compliance Emerald Article: OFAC compliance in the securities and investment sector
