Necessity of Stock Promotion

Necessity for Promotion__________________________________________________

Whatever merit a small company may have, it is obvious that small companies are not well known and need stock promotion to get investor attention. This level of attention is not the same as the mad promotion of the typical pump and dump, relying as it does on out of this world predictions and spam. The old adage is that “stocks are not bought, they are sold,” holds true for all securities, with the possible exception of undervalued securities which are sought by value investors. It is interesting to note that during the time of the Internet bubble, major underwriters paid hundreds of thousands of dollars to other NYSE houses to do research reports on their recent IPOs. IPOs are the subject of a relatively large amount of promotion and comment. If these IPOs need promotion, so do smaller companies. Our purpose here is to show where the proper boundaries are for that necessary promotion.

Third Party Payments____________________________________________________

Naturally we suspect that if a large shareholder is paying to induce buying into a stock, it is for the purpose of increasing the price and volume of the stock so the shareholder can sell.