The phenomenon of “fake news” has infected some well-known investing websites. The Securities and Exchange Commission has brought civil fraud charges against 27 companies and individuals involved in stock-promotion schemes that played out on popular sites, such as Benzinga, Seeking Alpha and Wall Street Cheat Sheet. The SEC alleges that public companies used intermediaries to pay writers to post bullish articles without disclosing that they were paid for. More than 250 such articles “specifically included false statements that the writers had not been compensated by the companies they were writing about,” says the SEC.
To avoid being duped by phony advice, investigate before you invest. If a writer claims to be an investment professional, search on Investor.gov to view his or her credentials, says Lori Schock, director of the SEC’s Office of Investor Education. And even if you trust the author, says Schock, thoroughly research any stock you’re considering, especially thinly traded “penny stocks,” which are more susceptible to promotion schemes. The SEC’s Edgar database provides free access to corporate filings, such as quarterly and annual reports.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
10 Tax Topics Every Retiree Should Know AboutA little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
-
Berkshire Hathaway's in the 100,000% Return Club. No Surprise HereWarren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole SpeechSentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
-
Stock Market Today: Stocks Rise After Jobs Data Lifts Rate-Cut OddsPreliminary data from the Bureau of Labor Statistics shows job growth was lower than previously estimated.
