I can't believe that I as a normal shareholder would be of any interest to the SEC--that they would "use" me to try to see if there is anything else of interest to them. Individual shareholders are of GREAT interest to the SEC. Ever hear of Michael Milken?
The SEC can go after a defenseless individual shareholder with the absolute power of the US Gov't behind them. IF a shareholder made a profit trading a stock, and he was in violation of any law, they can take the profits away. What laws? Example: Say your broker says he hears there's a rumored take-over in XYZ Industries tomorrow, you buy, SEC calls that insider trading, you lose!
Individual shareholders are also witnesses to the wrongdooings of others. Example: Say you bought a stock and it went down, a possible fraud, you might tell them a Broker at WXYZ Brokerage told you about the stock, the SEC prosecutes the broker for "hyping" violations.
These are but two quick examples. By talking with the SEC we lose. The SEC only TAKES, they never GIVE. Reverse the above examples, and they would not (A) reimburse your LOSSES, or (B) they would not thank a broker for being honest. It is always a one-way street with the SEC. They want to attack, or move on until they find someone else to attack.
Much like a pitbull. He'll either bite you, or move on and bite the next guy. Best course of action sometimes is to stay inside the house rather than go outside and try to feed the pitbull.
Good Luck, Colin |
