Stock Picking Websites

Chezowan · #1 (**permalink**) 01-16-08, 09:19 PM

Hi I was wondering if Stock Picking or Stock Advice is legal. For example, there are hundreds of websites that offer their picks for stocks that will rise (or fall) and I was wondering if this was legal.

Stocktrading101 · #2 (**permalink**) 01-17-08, 12:02 AM

Yup, as long as you have a disclaimer it is legal. What you have to watch out for are the what are known as "pumpers" and scammers.

If you ever see anyone writing or emailing you about some, "AMAZING STOCK PICK!! EXPECTED 1000% RETURN" they are trying to pump the stock, don't listen!

A good recommendation is one that simply backs an opinion with actual facts and data, and leaves YOU to make the final call.

Chezowan · #3 (**permalink**) 01-17-08, 09:35 AM

I'm not really concerned about selecting a company but I was just discussing this with my dad, who is a registered broker and he said the securities industries is extremely regulated and that giving advice or stock picks cannot be legal.

Fredledingue · #4 (**permalink**) 01-17-08, 01:30 PM

If it was realy illegal analysts would cease to exist.

As for website and spammer, their activities may be illegal but as long as their server hardware is located in a country where it's legal, there is nothing the US fraud departement can do about that.
That's why you have pinksheet.com and the likes.