Are the folks who buy penny stocks and then talk them up on the internet in violation of securities laws, or are they protected by "free speach" if they want to tell everyone about xyz corp?
2006-07-19 18:57:41 · 3 answers · asked by michinoku2001 7 in Business & Finance ➔ Investing
It's called 'pump and dump'
Artificially inflating or pumping up the price of a stock, then selling or dumping it.
Not legal
2006-07-19 20:00:24 · answer #1 · answered by Piggiepants 7 · 0⤊ 0⤋
It may be illegal but even the big boys do it. I got burned on an Intel announcement a few years ago and it wasn't for pennies. They came out after closing to make it and by the time the market opened it was cut in half.
2006-07-19 20:51:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you receive these 'stock tips' in an email, forward them to enforcement@sec.gov.
For fun, I track these tips and their average return is -80%.
2006-07-20 00:34:21 · answer #3 · answered by insuranceguytx 5 · 0⤊ 0⤋