Archive for the ‘ Market Basics’ Category

Avoiding Fraudulent Schemes Carried Out through Investment Newsletters

Tuesday, June 10th, 2014

In a recently published alert, the U.S. Security and Exchange Commission (SEC) provides useful guidance to help investors avoid fraudulent schemes based upon investment newsletters. It’s a common problem, with investors often getting enticing information through online or hard copy newsletters. The alert points out that, though many investment newsletters are legitimate, some have been found to deceive investors.

The SEC alert lists a number of things to watch out for, including:

Touting – This is when a newsletter promotes a stock without properly disclosing compensation received for the promotion.

“Pump and dump” schemes – This involves pumping up a company’s stock price by making false and misleading statements to create a buying frenzy, allowing the promoters to then sell shares at the pumped up price.

Scalping – This is simple recommendation of a stock to drive up the stock price, and then selling shares of the stock at inflated prices to generate profits.

Undisclosed conflicts of interest – This is falsely claiming to provide independent analysis, or failing to explain conflicts of interest (or biases), including financial incentives, that may influence the investment recommendations.

False performance claims – misrepresenting the track record of the newsletter’s investment recommendations.

If a newsletter promotes a particular stock, read carefully what the newsletter says about compensation it receives and look for these red flags:

No disclosures – Be suspicious if the newsletter does not disclose having received any compensation.

Vague disclosures – Be skeptical of newsletters that do not specifically disclose who paid them, the amount, and the type of payment.

Buried disclosures – Be wary if the newsletter’s disclosures are difficult to find or appear in tiny, hard-to-read print.

Questions about your stock purchases – Be careful if a newsletter representative asks you detailed questions about your stock purchases like how many shares you bought, when you purchased the shares, or which broker you used to buy the shares. The newsletter publisher may make money based on the amount of shares its subscribers buy.

Even if a newsletter makes specific disclosures about being compensated for promoting a stock, be aware that fraudsters may include such disclosures to create the false appearance that the newsletter is legitimate.

Fraudsters may also use newsletters as a way to get their foot in the door to pitch fraudulent investments by phone. Be careful if someone tries to get you to subscribe to a newsletter and then calls you with specific investment recommendations.

When considering any potential investment, watch out for these warning signs of investment fraud:

Promises of high investment returns – Be highly suspicious if the promoter guarantees you a high rate of return on your investment.

Pressure to buy RIGHT NOW – Be skeptical if the promoter pitches the investment as a “limited time only” opportunity, especially if the promoter claims to base the recommendation on “inside” or confidential information.

Sounds too good to be true – Exercise caution if the investment sounds too good to be true. Investments providing higher returns typically involve more risk.

For additional information on the SEC’s recent investment alert, visit

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QualityStocks Keeps Investors Abreast of Small-cap Market’s Latest and Greatest

Tuesday, January 8th, 2013

There’s a barrage of financial information available at any given moment – while it initially sounds great, investors need a quick, clear-cut method to dig through the madness to find their next great investment opportunity. QualityStocks keeps investors up-to-date on everything related to the small-cap and micro-cap markets by offering several ways to filter through the information to easily find the material needed.

The QualityStocks Blog is updated daily; investors can read about leading players in the small-cap and micro-cap markets and discover emerging companies flying under the radar along the way. We’re not just committed to the highlighting rising stocks; we’re also going to tip you off to ones you may not have noticed before.

With all the “hottest” picks and recommendations available in the investment world, how do you decide which stocks are worth a second look and which ones you need to avoid? At QualityStocks, we collate hundreds of investment newsletters into ONE daily newsletter,“The QualityStocks Daily,” which lists all the latest and most talked about stock picks of the day. We organize the data so you have the most up-to-date information delivered right to your inbox.

The QualityStocks Message Board is one of the most highly regulated, no-nonsense forums online today; an uncommon haven of highly relevant, SPAM-free investor interaction. Avoid the typical message board pumping, bashing, advertising or malicious posts – the QualityStocks Message Board is market interaction at its finest.

With QualityStocks you will:

• Stay on top of momentum trading opportunities!
• Discover high-performance winning stock picks from ONE newsletter source!
• Watch investment newsletters to see who is making the best recommendations!
• Keep track of new investment newsletter sources as they are published!
• Track stock picks by exchange and by price trading point!
• Protect your e-mail inbox from unwanted spam by unsolicited commercial offers!

For more information, visit

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Tips for Stock Investments from’s Market Basics

Thursday, October 25th, 2007

Stocks to avoid, Due Diligence, Monitoring Investments, Key terms in investing – these are among the topics covered by us in our section called the Market Basics. This is where we give answers to basic questions regarding stock investments for both new and experienced investors.

Investing stocks is risky especially if you don’t know how to go about it. Interested investors of small cap stocks should have a comprehensive understanding on how markets work and what to do for their investments to gain the highest earnings. To fully equip investors with knowledge regarding investing and protect themselves, Quality Stocks have compiled articles that can be helpful.

Visit to find out more.

If you want to learn more tips and information via email, you can subscribe to our free investment resource called “The QualityStocks Daily” which tracks and measures all current penny stock and micro cap stock picks in the market place.

Investment Tips and Market Advice for Small Cap Trading Offered by

Monday, October 15th, 2007

For individuals interested in investing in small cap stocks it’s important to have a comprehensive understanding of how the markets operate and what signs to look for to ensure you find investments with the highest potential gains.

It is for this reason that QualityStocks has created the investment resource “Market Basics.” Inside this section of QualityStocks, investors can gain a fuller understanding of various types of micro-cap stocks, what constitutes a micro-cap stock, and the terms used inside the market.

In addition to gaining a broad understanding of how the small cap market works, investors are also offered valuable tips that can be used to uncover stocks that present favorable investment opportunities. While sound investment decisions require diligent research, presents a series of guidelines and questions that should be followed and answered as a method of starting your exploration.

Practicing due diligence is often the difference between the successful investor and the investor who struggles to find success in the small cap market. Often times it’s the latter that falls victim to the scams and schemes that work their way into daily trading.

As part of the QualityStocks “Market Basics” investors are given information on what to look for and how to determine if a stock is reputable or if it should be avoided at all costs. By taking the time to investigate a company’s financial reports, market history, liquidity and more, every investor has the ability to avoid the unsafe investment.

Topics included in the “Market Basics” are: Key Terms In Investing, What Are Micro-Caps, Types Of Micro-Caps, Research Micro-Caps, Share Offerings, Micro-Cap Brokers, Due Diligence, Trade Executions, Monitoring Investments, Investor Protection, and Stocks To Avoid.

To read more about the QualityStocks “Market Basics” please go to: has devoted itself to providing investors with information on hand so that they may meet the investment goals they have set. The “Market Basics” is a perfect complement to the small cap companies highlighted each day by QualityStocks in their free small cap stock newsletter and their daily video that highlights market trends and investment opportunities.

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The Basics of Technical Analysis Part 1: Finding Support and Resistance

Wednesday, August 29th, 2007

Support levels are usually below the current price but it’s not a rare sight to see a stock trade at or around its support. Since technical analysis isn’t a precise science, many times trades can go through at a lower price than support before rebounding.

Support is made once the demand for shares overpowers those that are selling. Many times support is established after a stock’s price bounces at or near a certain price more than once. The most popular moving averages are also used as support, the most used moving averages include the 32-day, 50-day and 200-day.

Resistance and support are essentially the same thing. If the price breaks below a support level, the support can turn into resistance. On the other hand, if the price breaks the resistance, the resistance can turn into support.

Resistance and support levels are key pivot points in a stock’s trading and are regarded as crucial tools to the successful trader. A stock will usually run for higher prices after breaking resistance, but if the resistance is not broken, the stock has strong potential to take a turn towards the downside until its closest support is reached.

To learn more basics about the stock market, please visit:  

Key Things to Look for When Making a Micro-Cap Stock Investment

Tuesday, August 28th, 2007

Before making a Micro-cap Stock investment, research should be done and questions should be asked. One of the first steps is finding out whether the stock has registered its securities with the SEC or the state’s securities regulators.

Other questions include:

Is the company making money?
How do they rank in relation to their competitors?
How liquid is this investment?
Does this investment match my investment goals?
How will this investment make money?
What must happen for this investment to increase in value?
What are the total fees to purchase, maintain and sell this investment?

It is also important that the company’s business is understood because many micro-caps have no operating history or defined business plan. Recent information about a company can be found in quarterly reports, which include the company’s current financial and business position.

To learn more basics about the stock market, please visit: