Return of the Penny Stocks - When Will They Just Go Away?

Stockbroker Law - Tuesday, September 13, 2011
Return of the Penny Stocks - When Will They Just Go Away?

The sale of low-priced, thinly-traded shares of companies, usually traded on the Pink Sheets, the OTC Bulletin Board and other exchanges, has seen a resurgence in the past few years.  The high-pressured telephone cold call and Internet-based sale of penny stocks to unsuspecting and inexperienced brokers have been the target of numerous recent regulatory investigations and prosecutions brought by the Financial Industry Regulatory Authority (FINRA) and the Securities & Exchange Commission.

Penny stocks have also been prevalent in a number of “pump and dump” penny stock promotion schemes whereby shady, and even unregistered purported brokerage firms hype up the value of these companies with promises of assured fantastic growth, with these shares usually crashing and losing virtually all of their value in a matter of days.  Remember, if it sounds too good to be true, it probably is.

We offer a free initial consultation to investors who feel they may have been victimized by a penny stock scheme.


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