The Securities Law Blog: Be Wary of Famous People Promoting Penny Stocks

The penny stock market has the potential for significant profits, and of course, significant losses. Investing in start-ups and small companies is speculative, and high risk, but has an allure for a certain type of investor.One problem with this market segment is the promotion of such investments to individuals who are unsuitable for the investment,Over the years we have seen well known individuals promote such ventures. Bloomberg Business has an article regarding four-star Army general Wesley Clark’s involvement in promoting such ventures, including a Grilled Cheese Truck company, and a hydroponic lettuce company.

Source: The Securities Law Blog: Be Wary of Famous People Promoting Penny Stocks