Is it illeagal to promote stock you own?

Question

For example, if a company posts a press release on their website and I own stock, and I think it will persuade people to buy the stock (thereby increasing my stock value) would it be illeagal for me to distrubute the public press release through mass media sources? Why? Or Why not?

Answer 1

If it were illegal there would certainly be a lot of people on Wall Street behind bars. That is all they do is promote stocks.

Answer 2

No, although the websites I write for require that I disclose if I have a position in the stock. This helps readers know whether or not I have any conflict of interest, and most good investing sources have disclosure rules. Seeking Alpha, the Motley Fool, and CNBC all have policies that require contributors/guests to say if they have a position (long or short) in the stocks they mention or derivatives.
Personally, I think it would be deceptive and disingenuous to promote a stock and not tell people you own it. Additionally, I think telling people you own it will help your case, because that means you are "eating your own cooking" - although I'm not sure how much you can move the market for a stock unless the company is very small or the shares are very illiquid, unless you know people with a ton of capital.
Hope this helps.

Answer 3

I'm pretty sure it's not illegal unless you are a professional fianancial advisor or analyst ( they must always post a " disclaimer" or "disclosure" with their opinions)
So you and I can just hang out here and say things like: " Buy Tribune stock...the Cubs are going to the World Series!!!"

Answer 4

It is not illegal to promote stock you own by distributing factual information, although it is probably not effective.

If is illegal to try to manipulate a stock's price by distributing false information. This is usually done on very small cap penny stocks which can have huge percentage moves.

Answer 5

No.