SEC Charges Eleven in Stock Manipulation Ring

[mimurray]

The problem is it is very hard to prove that a seller knowingly was selling defective products. It all boils down to how it is promoted, or advertised. And you can bet that if a seller does know he/she is selling defective products they will be VERY careful in how they advertise their products. They will use CMA language all over the place.

When it comes to stocks, the playing field changes. I do not all of the fine details, but we all know way more people get away with playing underhanded games than those that get caught. Caveat Emptor plays a HUGE roll when it comes to stocks. In the end, nobody forces people to buy stock. When someone buys a stock it is a conscious action on their part. If they do not do proper homework it is hard to cry foul after the fact. Especially when it comes to penny stocks. There are warning signs all over the place telling people how risky these stocks are.