Yes, all people who discuss a stock they have a position in can be considered promoters...i do not have a problem with promoting as long as NO COMPENSATION was given to the individual in any form....if compensation was given, then you should have to put a disclaimer (which GB confirmed today is law as it should be) or else face legal charges
If you take compensation from a company to hype, then disclaim that....or else investors are being hurt BIG TIME for not knowing this...I NEVER buy a stock when I am aware of online spindoctors being paid to tout and I feel everyone should be made aware of this information when considering an investment in the company. Now, finding out that someone is being paid to tout is a complicated process to find out but I have dug around and found a few people that match these guidelines...I just stay Clear of the stocks they promote because I know it is not their confidence they are speaking about, but rather they just want to get paid as much as possible. In most cases, there are a certain number of shares given depending on how high they can get the stock up. Most promoters don't actually like the stocks they hype, but just do it to get paid....they'd promote a bag og manure if the price is right.
eg. a stock is sitting at $1.00....a spindoctor is approached and the company sets the following guidelines.....10,000 shares to hype around the internet...when/if the stock hits $1.25 an extra 5,000 shares will be given to you...if the stock hits $1.50 an additional 10,000 on top of the already 15,000 will be given to you....etc. So the higher one pumps it up, the more shares the company will give them...This should have to be disclaimed and I wish the SEC would crack down on the people who are doing this without putting a disclaimer with the hype
Boob..JMO |
