[mage lang="" source="flickr"]view penny stocks[/mage]
Legality of Penny Stock “Scams”…?
I’m doing a presentation on Penny Stock Sites for a business class..
What exactly is the legality/illegality of penny stock hype websites that clearly promote stocks to pump up the price? They do mostly acknowledge in the fine-print that they have no stock qualifications and are purely advertising one stock because the company is paying them. Furthermore, in the disclaimer they say that they or affiliates may be holding positions in the stock at the time that they begin to promote one and that this should be viewed as a conflict of interest.
Is it legal because they are acknowledging the true purpose behind the method? Or does that disclaimer still not cover it?
Here’s an example from one of the websites:
Thanks for you’re help!
underthe european MIDID law that would be highly illegal. if someone writes an analyses on a stock, or recommends it either free or vs payment. theyre not alowed to hold any interest in the movement of that stock.
every advice therefor closes with: analyser holds no position in stock.
i dont know the legality in the US it might be different (and probably is otherwise there would be no advertisements)
Golden Penny Stock Millionaires.com Is $47 Mthly Recurring Commissions (view mobile)