|Forum - Wall Street Pit
||Stock Due Diligence for All|
|From: luvb2b (Rep: 1307) reply to cashrich||Date: 03/18/2011 09:17|
|Forum: Wall Street Pit - Msg #2101459||Thread #673188391 (Rec: 18) |
|Re: question about touting stocks...|
the other angle is the stock manipulation angle. if you make statements or take actions that are designed to manipulate the price of a security, it's illegal.
for example, if i take a low volume stock that trades, say 10,000 shares a day. then i buy a bunch of shares. after that, i send private messages alerting my friends to buy shares. following that i write blogs, post messages, send tweets to thousands of my followers that 'this is the most undervalued stock' etc. etc., thereby causing the price to rise, and during that time i sell some or all of my shares at a profit. well the sec will likely view this behavior as illegal (falling under touting or scalping provisions).
you could read about the tokyo joe case as an example:
tokyo joe was charging for his services. there are others you can read about that should follow the pattern above on the sec website.
the key is that if you have thousands of followers and you specifically offer picks to them, you can be held to account. if you are just posting a message on a board etc., it won't fit into that category.
also you can google:
and get some idea of the types of actions that are brought.
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"There are those who market trades, and there are those who trade markets.
There are those who follow marketers, and those who follow markets.
The marketers feast on their followers; the traders feast on the markets." -luvb2b
***Disclaimer & Disclosure***: I make no guarantee as to the accuracy or validity of information in this message. Messages posted reflect my own opinions and/or those of others, and are posted for entertainment purposes only. My messages should not be construed as investment advice. Always make investment decisions in consultation with your own financial advisor. Daytrading is not suitable for everyone. You trade at your own risk. Daytrading involves considerable risk and could result in significant losses, including losses in excess of invested capital. Any information posted here is meant for entertainment purposes only and should not be assumed to be accurate. It is expected that the readers of this information do their own research and due diligence when making trading or investment decisions. I may have long or short positions in any of the stocks that are mentioned, and these positions may change at any time.
| Reply to cashrich - Msg #2101430 - 03/18/2011 03:31|
question about touting stocks...
if a person says, "PLUG will prolly go to 1.00" is that illegal?
what does the SEC consider illegal touting anyways?
from what i can tell from the internet 1. false information 2. non-disclosure of compensation 3. non-disclosure of ties to company.
so, if it doesnt fall within these 3 thing, it's ok under freedom of speech?
i like this business, but i want to keep everything legal, so want to learn as much about this subject. thanks.
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