On November 5, 2015, the Securities and Exchange Commission (“SEC”) issued an investor alert to warn investors about fraudsters who attempt to manipulate share prices through social media. For a full text of the investor alert, click here. With the prevalence of social media and their increasing usage in market research, this seems to be a particularly appropriate topic for an investor alert.
In the investor alert, the SEC warned that, while social media can provide many benefits for investors, such as stock research and up-to-date news, it also presents opportunities for fraudsters to spread false or misleading information about a stock to large numbers of people with minimum effort and at a relatively low cost. … Read the rest