Example of Inadequate
Disclosure_________________________________________
This
report is for information purposes only and based on public data from
sources we consider to be reliable, but is not guaranteed as to
accuracy and does not purport to be complete. This report is not to
be construed as a representation or as an offer or the solicitation
of an offer by us to sell or buy any security. The information in
this report is not intended to be used as the primary basis of
investment decisions, and because of individual client objectives it
should not be construed as advice designed to meet the particular
investment needs of any investor. Any opinions expressed in this
report are subject to change without notice. [Investor relations
company] receives compensation from [name of issuer] for providing
shareholder and broker communication. This firm and/or its directors,
officers, employees or others associated with it may have positions
in or effect transactions in the security or its derivatives. Annual
report, 10K and other information upon request.
This
is inadequate because it fails to state with regard to the particular
issuer what is the amount and type of compensation paid.
Note
also that the compensation that has to be disclosed could be paid in
the past, paid in the present, or promised to be paid in the future.
In fact, you could be liable even if the promised compensation was
never paid.
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