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Thursday, May 04, 2006

Pink Sheets proposes new SEC rule

Pink Sheets LLC is proposing new rules for disclosure in stock promotion.
Full rule details are here.

Here's an interesting part of the proposed rules:
The term "securities promotion" shall mean "the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer."
Fortunately, they included the section I put in bold above. Otherwise, this blog would be considered a stock promotion and I'd be stuck with restricted stock, having to register whatever I owned, and limitations on my activities.

I worry somewhat about rules like this. Good rules are things like GAAP and anything that levels the playing field for people who have some basic common sense and do some basic dilligence. Paternalistic regulations are generally bad rules, in my opinion.

When you look at something like the Sunwin promotions, it's very easy to see that Sunwin paid the promoters. I don't need someone to tell me that.
why does Air Arabia have South Park characters on their website?

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