Young enterprenuers make $1.2m
Discussion
t there is something about this that I can't help but admire - maybe just the downright cheekiness of it?! Interesting model.
Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
johnfm said:
Interesting model.
Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
Really?Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
Large, privately owned company (let's say an Internet based company still in burn cash mode) decide to float.
Let's call this example company mylasttweetbook.com
They engage companies to write very very very very long prospectus documents adhering to various FSMA rules* - essentially telling investors about the company. A whole bunch of sponsoring investment the. Try and flog tranches of stock to institutional investors at a price that they determine.
So, these banks are being paid by the entity that wants to sell its shares. They are then promoting these shares to institutional and private investors.
Regulated, but not fraud.
Teenagers unregulated - but not fraud.
Have they been charged with fraud?
Let's call this example company mylasttweetbook.com
They engage companies to write very very very very long prospectus documents adhering to various FSMA rules* - essentially telling investors about the company. A whole bunch of sponsoring investment the. Try and flog tranches of stock to institutional investors at a price that they determine.
So, these banks are being paid by the entity that wants to sell its shares. They are then promoting these shares to institutional and private investors.
Regulated, but not fraud.
Teenagers unregulated - but not fraud.
Have they been charged with fraud?
- and of course a large part of the prospectus will be reams of caveats ensuring that in the event of massive investor losses, it ain't nothing to do with dodgy advice - shares go up and down blah blah blah
Edited by johnfm on Saturday 21st April 14:29
johnfm said:
I am not necessarily defending their actions by the way...but there are parallels between their actions and how the regulated market go about their business
Certainly some of the behaviour of the so called regualted finacial iondustry has been less than savoury.But two wrongs don't make a right and these chaps, if guilty of fraud, will pay the price - hopefully.
johnfm said:
I am not necessarily defending their actions by the way...but there are parallels between their actions and how the regulated market go about their business
Disagree, they were being paid fees to promote stock but not disclosing this to their clients. This is clearly a conflict of interests, and especially bad in the case of penny shares because false information can move the share price significantly. Morality and parallel issues aside, this is a clear breach of federal securities law in the US [read about microcap stocks]. They better start lubing up for prison time. As Eric says, they are not clever because they someone else has, or may have, made money at their expense - even if they are not found guilty, they may be barred from certain areas of employment.Edited by fido on Saturday 21st April 15:13
Apologies if my title was taken out of context - entrepreneur meaning more in the way of Del Boy.
But still, although what they did was downright dodgy - to think this up, get companies on board, get subscribers, and name the 'robot' after a combination of your first names, at the age of 16/17 - that I find impressive.
Comparisons on here to larger financial institutions are quite interesting.
But still, although what they did was downright dodgy - to think this up, get companies on board, get subscribers, and name the 'robot' after a combination of your first names, at the age of 16/17 - that I find impressive.
Comparisons on here to larger financial institutions are quite interesting.
johnfm said:
Interesting model.
Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
Hi John. Sell stock tips cheaply to a large volume of 'investors'.
Sell to companies the right to be a stick tip.
Sounds a bit like an IPO.
These guys are just guilty of giving unregulated advice - but I wouldn't say it was any more fraudulent than many banking and pension fund activities.
Google 'Pacific Continental' or 'Everett Financial' or 'Sky Capital'
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