Investment Newsletters: Analysis or Advertising
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(pg. 2)
Where can you find the publisher’s disclosure?
You will find the publisher’s disclosure in the disclaimer section of
the newsletter. When reading any disclaimer, be mindful that compensation
is given in different ways. Compensation doesn’t only mean the payment
of money but can include:
-
The issuance of shares to the publisher or any other compensation which
ultimately benefits the publisher for publishing the newletter recommendation.
-
The hiring of the publisher as consultants or advisors.
-
The publisher purchasing shares of the company before its recommendation
and sale of such stock immediately after the stock recommendation.
Examples
Here are a few examples that should forewarn you that the publisher
of the newsletter is receiving compensation for the investment newsletter:
-
“ the publisher may from time to time have a position in the securities
mentioned”
-
“the publisher has been retained as an advisor”
-
“the publisher has been retained to provide consulting services.”
-
“ The Publisher will therefore benefit from any increase in share price
as to the stock of any Company advertising herein which is
held by the Publisher.”
-
“Members of the organization, its officers, directors, employees, and associated
individuals may have positions in investments referred to in this newsletter
and may add or dispose of the same. “
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(pg. 2)