Spotting Marijuana-stock Manipulators Like Medbox, Most Marijuana Stocks Trade Over The Counter (otc) Because They Can’t Meet The Financial And Reporting Requirements Of Major Stock Exchanges, Like The New York Stock Exchange.

A businessman in handcuffs. The SEC argues that proceeds from those illegal stock sales accounted for “nearly 90%” of Medbox’s revenue in the first quarter of 2014. In a text message released by the SEC, Mehdizadeh seems to concede that misrepresenting the company’s revenue to investors was part of his business strategy. In that text, he wrote: The only thing we are really good at is public company publicity and stock awareness. We get an A+ for creating revenue off sheer will but that won’t continue. Mehdizadeh is settling the charges against him for $12 million, plus a promise never to serve as officer or director of a public company or participate in any penny-stock offerings in the future, but that’s probably little comfort to investors who bought Medbox shares because of revenue reported in those press releases. Spotting marijuana-stock manipulators Like Medbox, most marijuana stocks trade over the counter (OTC) because they can’t meet the financial and reporting requirements of major stock exchanges, like the New York Stock Exchange. For this reason, it’s probably best to avoid over-the-counter stocks altogether. However, here are some tips to help you spot a fraud, regardless of what stock exchange a company’s shares trade on: Ask “Why me?” If a marijuana stock is being recommended to you, Green Rush keep in mind that you might be a target of someone who is being paid to sell that stock to you. Use extreme caution with companies that seem to rely more on hype than on fact. Research every company thoroughly, and don’t invest a dime until you’ve done all your homework. Dig into the details.

To read more visit https://www.fool.com/investing/2017/03/18/this-fraud-shows-how-massively-risky-it-is-to-buy.aspx

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