Hi virginijus,
A MUST READ FOR ALL.
Interesting articles for your enjoyment and safety.
stockdetective.com
stockdetective.com
stockdetective.com
It is unlawful "to publish... or circulate any notice, circular,
advertisement... or communication which, though not purporting
to offer a security for sale, describes such security for a
consideration received or to be received, directly or indirectly,
from an issuer... without fully disclosing the receipt, whether past
or prospective, of such consideration and the amount thereof."
The latest proclamation from Securities and Exchange
Commission Chairman Arthur Levitt? A recently enacted law
from the U.S. Congress? Think again. The above passage is
contained in Section 17(b) of the Securities Act... written in
1933!
In plain English, publishers that have been compensated in any
way for discussing a stock -- even if it is not to be construed as
"investment advice" -- must disclose this fact, as well as the form
and the amount of the compensation.
The provision was "particularly designed to meet the evils of the
'tipster sheet,' as well as articles in newspapers or periodicals that
purport to give an unbiased opinion but which opinions in reality
are bought or paid for," according to the report from the
Committee on Interstate and Foreign Commerce which led to the
1933 law. The more things change...!
The stock promoters, for the most part, have successfully
ignored Section 17(b). Indeed, the SEC has been slow to enforce
it, perhaps because the agency's resources have increased at a
small fraction of the rate of increase of participants and assets
invested in the securities markets.
GOLDIGER. |
