Stock promoter

A stock promoter is a firm or person who promotes a stock, seeking to induce potential investors to buy it as part of an IPO or in the secondary market.

Stock promoters may rely on cold calling prospective investors to acquire stock in a company, as well as using the Internet, which provides for a much more efficient method of promoting a stock to a wider audience.

In the United States, some stock promoters promote penny stocks because of the difficulty in finding information on these companies as they are normally listed on the OTC Bulletin Board or Pink Sheets, which do not require companies to provide as much financial information as exchanges such as the NYSE.[1][2]

References

  1. ↑ Mufson, Stephen (1998-10-29). "SEC Accuses 44 Online Stock Promoters of Fraud". The Washington Post.
  2. ↑ Hanley, Robert (2003-08-09). "Maze yields $46 million Penny-stock promoter's assets traced". International Herald Tribune.
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