en.wikipedia.org/wiki/Pump_and_dump
1 correction found
Shortly thereafter, both FINRA and the SEC enacted comprehensive revisions of their penny stock regulations.
This is an anachronism. Georgia’s penny-stock law was enacted in 1990, but FINRA did not exist until July 30, 2007; the self-regulator at the time was NASD, not FINRA.
Full reasoning
The timing in this sentence does not work.
- A Georgia government publication summarizing the 1990 legislative session says the state’s penny-stock law was enacted in 1990, with the relevant act effective July 1, 1990.
- FINRA’s own materials say NASD changed its name to FINRA on July 30, 2007.
So FINRA could not have enacted penny-stock revisions “shortly thereafter” in response to a 1990 Georgia law, because FINRA did not yet exist. The historically correct self-regulatory body for that period would have been NASD, FINRA’s predecessor.
2 sources
- Summary of general statutes enacted at the 1990 session of the General Assembly of Georgia
This Act comprehensively revises Chapter 5 of Title 10, the "Georgia Securities Act of 1973," to prevent fraud and abuse in the sale of penny stock to Georgia residents. ... Effective July 1, 1990.
- Regulatory Notice 07-47 | FINRA.org
On July 30, 2007, NASD changed its name to FINRA and changed its Internet domain from www.nasd.com to www.finra.org.