Thursday, August 13, 2015 11:40:24 AM
are Disclosing
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Quote:
17(b) of the Securities Act of 1933. "17(b) provides that it is unlawful to publicize a security, if you are being paid to do so, unless you disclose three things," said Walker. "The first thing that is required to be disclosed is nature of the compensation you are receiving, whether it is cash, or whether it is stock. The second is the amount of compensation you are receiving. And the third is the source of the compensation."
Walker added that, "17(b) does not prohibit free speech. It does not prohibit spamming, online newsletters, posting on message boards, without other activity as well. But lying to investors, or failing to disclose compensation, does violate the law."
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