This is a waaay different market than what older investors are used to. The old market, where the SEC, FINRA and other regulators rarely took any action, no matter what was proposed, is over and done with. The scammers and other operators only get one grab at the brass rings. They can no longer count on selling shares up to their authorized limit, then reverse split the stock and start the selling all over again.
I saw a gold company I had years ago, they used to issue reports of new mining rights they had acquired on land. That would send the stock price surging ahead. Today the company can no longer file such reports without providing proof of the contracts, the SEC will not approve the filings until they get proof, so while the company still puts out news releases, they cannot file. Without SEC approved filings the investors stay away. The company languishes in a nether world. Used to be the SEC simply accepted whatever a company handed them and filed it. So, investors were mislead into believing the companies claims had to be true, because the SEC accepted the filings. Those days are over and done, the regulators are taking actions.
There still will be scams but they will become more difficult to do and the risks of discovery and possibly prison time for the scammers now looms larger than life. The SEC and other regulators will soon be deploying software that watches the market very closely for scams and the regulators will be able to react before many people get hurt. They already know what the red flags are, they've seen them time after time, but were unable to act because they had no regulations in place to take enforcement actions. They were hampered by legislative fears that regulations would put a chill on the over all market. Not so today, they've let slip the dogs of regulation and scammers will be going to jail. Bank on it!
AI
