To: virginijus poshkus who wrote (1632 ) 11/30/1997 3:54:00 PM From: GOLDIGER Read Replies (1) | Respond to of 4571
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.