Was perusing the NASDR site on AOL. Thought I might post this informative bit of advice for all of us irrationally exuberant internet investors of GRNO.
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Investing on the Internet
A Powerful Resource....
As increasing numbers of individuals take to on-ramp to the fast-moving information superhighway, the Internet promises to revolutionize how our society works. Currently, more than 40 million people harness the power of the Internet--a number that has roughly doubled every year since 1988, with projections estimating 500 million users within the next few years.
For the securities industry, the Internet has helped democratize the investment process by providing widespread access to even the most specialized information--thus leveling the playing field for thousands of individual investors. And, while Web sites display updated quotes (now with as little as a 15-minute delay), chat rooms and bulletin boards provide forums for stocks not widely followed on Wall Street.
But Users Beware...
Like any technology still in its infancy, the Internet has its own set of growing pains. Because its ultimate potential is still unknown, many of its dangers are only beginning to surface. An informal study of half a dozen stocks conducted by NASD Regulations, Inc. (NASDR) showed a close correlation between Internet postings and changes in both trading volume and price.
The creates a dilemma for the regulatory agencies that protect investors: While NASDR will pursue securities fraud or stock manipulation perpetrated on the Internet aggressively, it would be an impossible logistical task to monitor every investment-related posting at thousands of chat rooms, bulletin boards, newsgroups, and homepages. In addition, organizations such as NASDR and the New York Stock Exchange have authority over their members only. Unless an infraction stems from a registered broker/dealer, our regulatory powers face severe limitations.
While the Securities and Exchange Commission (SEC), the states, and the Justice Department possess additional investigative capabilities and subpeona power, resource limitiations can impede their regulatory efforts. As the Internet continues to evolve, many rules--as well as the underlying tension between government regulation and freedom of speech rights--have yet to be defined. In fact, under the umbrella of First Amendment rights, many communications that could harm investors are not necessarily illegal. And, even if a rules violation did occur, it could be difficult to recover lost money through regulatory action.
It's Only as Safe as You Are Smart...
While most individuals have honest intentions and use the Internet as a legitimate investment tool, others may seek to distribute information and advice in order to manipulate prices or take advantage of unsuspecting visitors.
Remember, always consider the source of any information you receive. Although most online services, bulleting boards, and chat rooms display the screen names of users, individuals can remain anonymous behind aliases and misinformation. In most instances, there is simply no way to uncover someone's true identity. Are you getting information from a broker, short seller, corporate insider, amateur investor, or stock touter? And why do they have a stake in what you do with your money, anyway?
Protect Your Investments
Never make an investment decision based solely upon what you read online. Even if motives are honest, there are no guarantees that the information is accurate or the advice is sound. The real-time nature of the Internet, combined with its growing base of users, makes it a prime target for stock touting and bashing. Be wary of the gossip and unsubstantiated rumors that often infest these online sites.
A high pressure pitch for a particular investment can mean trouble. Be suspicious of "once-in-a-lifetime" opportunities, or demands to "invest quickly." Be alert for recommendations based on "confidential information," and "upcoming favorable research report," a "prospective merger or acquisition," or the announcement of a "dynamic new product." And, be especially careful about advice about unfamiliar securities.
There is no substitute for your own detailed research via a variety of media and sources. Any information you find on the Internet should be double-checked and verified. Consult business and financial publications, as well as a company's prospectus, offering circular, or most recent annual report. For smaller companies raising less than one million dollars--often the most difficult businesses to locate information about--be aware that the SEC requires these companies to file a "Form D" that includes the names and addresses of owners and promoters. Furthermore, it is always a good idea to check with a brokerage firm, an accountant, or a trusted business adviser to get a second or third opinion about an investment. For general guidelines on making investments, refer to Invest Wisely available from the NASD.
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Since I followed each and every one of the NASDR's recommendations regarding research on GRNO, I have ask myself.... "What did I miss??"
I guess we can ask them ourselves, can't we??
some POC's for you folks out there:
NASD Regulation, Inc.
1735 K Street, NW
Washington, DC 20006-1500
(301) 590-6500
U.S. Securities and Exchange Commission
Office of Investor Education and Assistance
450 5th Street, NW
Washington, DC 20549
(202) 942-7040 TTD (202) 942-7065
For the telephone number of your state securities regulator:
North America Securities Administrators Association, Inc.
One Massachusetts Avenue, NW
Suite 310
Washington, DC 20001
(202) 737-0900
Have a good one!!
Regards,
Ron |
