Misleading Sales of Penny Stock Brokerage Companies

September 9th, 2007


Penny stock brokerage companies have many things that can mislead you and putting you in serious situation. You must have a role in this process which is getting information from reliable sources if you decide to invest your money in penny stocks.

- Misleading records: many companies that trade on penny stocks, brokerage companies; have good records because of their past performance in business. But these records can be misleading as the result of market manipulation.

In other words, if you find price manipulation in penny stocks, you will mislead through companies record. Price manipulation here means the lowest and the highest price.


- Misleading television programs & internet information: some television programs are actually advertisements paid for by penny stock brokerage companies. Penny stocks that mentioned on television programs or on internet have no guarantee.

- Securities Investor Protection Corporation (SIPC): investors in penny stocks know that there is Securities Investor Protection Corporation (SIPC) to protect him/her. The fact that SIPC insures some things such as The Company’s bankruptcy but it doesn’t insure against loss from fraud or changes in the value of an investment.

- Registration: if a company trading on penny stocks is registered, it doesn’t mean that this company is guarantee because it can be fraud.

There is no need to worry about these misleading if you get a lot of information before you begin working with brokerage companies.

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  2. Stock-Brokerage » Blog Archives » Stock Says:

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  3. Stock-Brokerage » Blog Archives » Misleading Sales of Penny Stock Brokerage Companies Says:

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  4. Stock-Brokerage » Blog Archives » Stock Brokerage Firms Says:

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