PostHeaderIcon Online Investors Should Beware

Most online investors simply don’t know what to believe. They seemingly wander from rumor to rumor until one day, they learn the hard way that discussions online are supposed to be taken lightly-especially when it concerns your money.

Most people have been through several lawsuits simply because they posted fraudulent information or compromising information that caused an independent company’s stock to plummet drastically.

There are measures being taken by both the Security Exchange Commissions as well as the other companies involved in these online activities such as giving out subpoenas in order to ferret out information from their critics.

The companies are able to ask for the different personal information from web sites simply because there are times that the content of the posts by a particular informant becomes too good to be true or too ludicrous for most experienced trade sages to believe.

The companies are utilizing the power of the courts to essentially identify people who post important information regarding the stock of their company. However, sometimes, the damage has already been done before justice can run its course. Both financial and punitive damages may have already been done.

Lawsuits are just about the most recent thing that the online investing world has utilized in order to help with the fight against fraudulent information posting on various stock sites. There is an increase of policing activity by the SEC as it now has 55 full-time staffers who are all dedicated to bringing about justice in the online investing world.

This is a huge jump from the three-man team that they employed way back in 1999. Looking back at the exploits of the company, it is quite evident that the 50 cases out of the 240 Internet-related ones concern postings on message boards.

There was this one recent lawsuit that the SEC filed wherein they sued an individual who allegedly posted fraudulent information on a Yahoo! Message board which caused the stock of a company who collects bills to radically plunge down almost 30% in just two days of trading.

The 25-year-old man had identified himself as a president and chief executive officer of another company and that he as well as other executive officers were going to file a $20 million lawsuit against the bill-collection company. This type of activity isn’t tolerated in the business world as it directly affects the company and the people who put their trust in it.

The next time you hear a rumor on a message board or maybe even a press release. Do yourself a favor and get some authentic and legitimate information. Rumors are rumors.


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