Investors Should Use Caution In Assessing Internet Merger Rumors



Date Posted: 
Thursday, April 29, 2010

Of the thousands of postings made to the Internet everyday, some relate to news of purported future merger and acquisition activity.

Sometimes such postings can result in movements in the stock prices of the companies involved. Some postings may relate to investments in troubled financial institutions.

Investors need to use caution in assessing such postings.

In Evaluating Postings, Investors Should Consider:

  • Who is making the posting?
  • How credible is the person or firm making the posting?
  • What interest might that person have in making the posting?
  • What other independent sources of information might be available about the claims made in the postings?

How To Find Information On Publicly Traded Companies

Information on publicly traded companies, including quarterly and other reports, is available on the U.S. Securities and Exchange Commission’s website at www.sec.gov.