CFOs looking for credible, independent financial information may want to reconsider some of what they've read on top-rated financial news sites. The Securities and Exchange Commission has announced that sites including Forbes, Seeking Alpha, TheStreet and Yahoo Finance have published hundreds of articles written by individuals who were paid to promote certain stocks. Of the 27 individuals and entities charged, including public companies and communications firms, 17 have agreed to settlements ranging from $2,200 to almost $3 million.
“If a company pays someone to publish or publicize articles about its stock, it must be disclosed to the investing public," said the acting director of the SEC's Division of Enforcement in a press release issued April 10. As reported on the Poynter journalism website, "The SEC complaints lay out elaborate schemes to place promotional articles with influential investing websites and disguise the writers’ identities, deny any outside payments, and cover the tracks of those who submitted the articles."
Poynter (04/12/17)
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