Help make the SEC Expose Unsolicited Spammers and Stock Promoters
The problem:
pinksheets.com
Help make the SEC Expose Unsolicited Spammers and Stock Promoters
The problem:
There is hardly a household in America that has not been inundated with spam emails making fantastic claims about easy profits to be made by any purchaser of some obscure stock. In most cases, these securities promoters and those who finance them hope to turn a quick profit when unsuspecting investors buy stocks based on unsupported or spurious claims - leading the stock's market value to plummet as soon as these promotional activities cease.
Given that the OTC markets play an essential role in the capital formation of smaller companies and provide a portal for overseas issuers seeking to access the American capital markets, Pink Sheets is committed to working with regulators to create a more orderly and legitimate marketplace for all participants.
Pink Sheets’ proposed solution:
Pink Sheets has proposed that the SEC adopt a new rule that provides for full disclosure of the identity, compensation and relationships of all participants (i.e., issuers, sponsors, third party promoters, etc.) directly or indirectly engaged in the promotion of stocks in the over-the-counter (OTC) market and that targets the explosion of misleading spam email and fax promotions on OTC stocks and provides for increased transparency and effective disclosure to protect investors from "pump and dump" promotion schemes. The full rule change request is available for you to read at: sec.gov
"We believe that putting these straightforward requirements in place will enable investors to easily identify fraudulent stock promotions and unveil the miscreants who engineer them. Any company that does not have current information available has no business promoting its securities, since investors cannot make reasonable investment decisions in an information vacuum. By cutting off the ability of promoters, sponsors and affiliated parties to dump these stocks into the market, the rule will render fraudulent promotions unprofitable and set the stage for legitimate small company issuers to deliver information to the marketplace," said Cromwell Coulson, President and CEO of Pink Sheets, LLC.
What you can do to help:
We need your help as investors and as the recipients of unsolicited promotional spam to urge the SEC to consider this rule proposal. You can help by sending your comments directly to the SEC, either via email to: rule-comments@sec.gov, or, if it's more convenient, you can mail your comments to:
Ms. Nancy Morris
Secretary, Securities Exchange Commission
100 F Street NE
Washington, D.C. 20549
Your Email or letter should refer to SEC File No. 4-519. Request for Rulemaking to expose and prevent unlawful and deceptive activities by securities promoters and their sponsors. |
