Little if any verification is done by investors before they invest.
HARDLY .. but then i speak only for myself
but i did do significant DD back in 2008 which is why it would be months b4 i added to my initial buy .. since i wasn't sure that the co. would survive the events of the fall of 2008 when credit literally seized up
COD for COG was a fact of life and the co. wound up carrying the bag on one client of theirs that filed for BK .. specifically the reason i remained a shareholder in expo .. and subsequently added shares at various price points was 2 fold
first was mgmt going to restricted common from pref'd
and second the CC in late july re: ETC
as to why mgmt had to raise their AS in MARCH 2010 for the first time since they *traded* on the PKS .. i know exactly why that came to pass .. the events of late 2009 and early 2010
share reconciliation and changes at a private co.
and just to be really clear .. by mid sept 2009 i knew the intent of the *turn* and the GOAL PPS wise re: the CELLAR ..
fyi .. nothing that happened to EXPH was *UNIQUE* to expo holdings .. what is rather *telling* is that EXPO actually *SURVIVED* the .. er .. attn
but only *DD* and lots of reading reveals why that is :)