The penny stock market has the potential for significant profits, and of course, significant losses. Investing in start-ups and small companies is speculative, and high risk, but has an allure for a certain type of investor.One problem with this market segment is the promotion of such investments to individuals who are unsuitable for the investment,Over the years we have seen well known individuals promote such ventures. Bloomberg Business has an article regarding four-star Army general Wesley Clark’s involvement in promoting such ventures, including a Grilled Cheese Truck company, and a hydroponic lettuce company.
Source: The Securities Law Blog: Be Wary of Famous People Promoting Penny Stocks
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.
