Most of us in the U.S are familiar with lemon laws that protect consumers of automobiles that do not meet certain quality standards. But what about lemon laws against (phony) financial advice?
If you have ever signed up for a half-indecent financial information, you will probably get inundated with tons of email/snail-mail by financial 'experts' touting penny stocks touted to gain 1000% in the next 2 hours! These 'HOT alerts' claim to have timely, insider information on publicly traded companies that are going to explode soon -- delivering the average person from daily troubles and transporting them to a land of golf, perennial sunshine and crystal-clear blue waters.
Most rational people ignore such 'advice'. But what about those gullible ones that get taken in? Should there not be a lemon law to allow them to sue the advisor for information that was withheld/dramatized? How much of this PAID advice accurately portrays the downside and risk in investing in penny stocks, let alone the many business risks that these small companies face?
I'm not saying that investing in penny stocks is always wrong, nor I am challenging all advice provided by these newsletters. But some of this advice, is really worth nothing more than a lemon. And there should be a law to protect people who lose their shirt against such lemons!
http://bizthinker.blogspot.com
No comments:
Post a Comment