DNA Brands Inc (DNAX)

[Ed the Trader]

"Would redchip represent a scam?"

RedChip is a stock promoter. They get hired by publicly traded companies to attract additional new investors to the publicly traded company's ticker.

So, RedChip's existence depends on its ability to help enable sales of stock.

There are completely legitimate reasons why a company needs to raise funds through the sale of stock.

There are also cases where a company's CEO wants to raise additional funds through the sale of stock to allow the purchase of a newer model of Mercedes.

RedChip can be hired to promote the stock of either company.

It is corporate management which determines if promotion of a stock is a scam, not the promoter.

(Note I only considered here the case where the corporation is an active participant of the promotion. Sometimes, promoters pump and dump a stock without the corporation's knowledge or approval.)