Amy, Trafficking in rumors is a no-no for securities industry employees. At the very least the goal is not to be the attributed source of a rumor.
Here's an excerpt from a NASD publication:
Rumors, knowingly false and misleading
statements, incomplete information—
R e c o m m e n d a t i o n s , analyses, and statements to
customers must have a reasonable basis in fact.
Withholding material information from a customer
could be considered fraud. If you tell your cus-tomer
to buy or sell a security based on a “hot tip,”
you may have committed securities fraud. If the
“hot tip” is not real, or is not “hot,” you have misled
your customer. If it is a “hot tip,” you may be violat-ing
insider-trading rules. Either way,
you can be subject to civil liability, disciplinary
action, and even criminal charges. |
