Replies to post #6263 on Fortress Financial Group fka FFGO

[enlightened1]

NOT QUITE SURE WHERE THAT FITS.........

From what I have seen there is very little protection, or even
sympathy, for 'pinky speculators'

However, now the company has entered the world of Financial Services, and the parent company is US registered, it may be a different story if there is any hanky-panky' from now on.


http://www.usatoday.com/money/markets/us/2005-11-10-pink-sheet-cover-usat_x.htm

"......... Unlike stock exchanges such as the NYSE, the Pink Sheets system is an informal computerized network that allows brokers to trade stocks and compare quotes. When an investor wants to buy a stock on the Pink Sheets, they contact a broker, who can use a computer to see what the stock is trading for, then contact another broker who facilitates buying and selling in that stock.

Stocks on the Pink Sheets system fall between the cracks of regulation. The NASD regulates brokers, not the stocks they trade. The Securities and Exchange Commission, with few exceptions, regulates only companies with more than $10 million in assets and more than 500 shareholders. Virtually no stocks traded on the Pink Sheets clear that bar.

'As a practical matter, smaller companies tend to fall below the SEC's radar and state regulators'," says John Coffee, securities law professor at Columbia University. "They're too small.'

That means a lot of latitude for anyone who wants to abuse the system. Only when a penny-stock scam runs blatantly afoul of the law or violates anti-fraud provisions can the SEC get involved.

The SEC has not released the number of penny-stock scams it has found on the Pink Sheets this year, which makes the boom hard to quantify. But a few of the SEC's recent enforcements show the range of tactics used to lure investors: ..........."