PubCoCEO™

What Should You Do If Your MicroCap Company’s Stock is Being Promoted?

Last week, OTC Markets Group released their updated policy on stock promotion.

“Improving investor transparency and setting market standards with clear expectations for how reputable public companies should respond to misleading and manipulative promotion encourages management teams to more proactively address and dispel unfounded rumors and correct misinformation that can lead to unusual market activity,” said Liz Heese, OTC Markets Group Executive Vice President of Issuer and Information Services. “Our goal is to provide the framework of best practices that will foster better informed and more efficient public markets.”

So, what should a reputable public company do if their stock is being promoted?

OTC Markets has some ideas. As part of their initiative, OTC Markets Group shared best practices for issuers dealing with stock promotion. They break these practices into two categories, prevention and addressing promotion.

Prevention: 

– Do your due diligence on investor relations firms

–  Avoid misleading or manipulative content in investor materials

– Know your investors

– Avoid toxic financing

– Disclose sponsored campaigns and identify service providers

 Address Promotion in Your Stock:

– Timely disclosure

– Expose anonymous promoters

– Impose ‘black-out periods’ for insiders

Learn more HERE.