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Is it illegal to advertise stock tickers on billboards/social platforms/etc?

Personal Finance & Money Asked by Jacob Barnes on January 31, 2021

I’m having trouble finding an answer to this and given all the turmoil in the markets recently, I’m having a hard time understanding what constitutes manipulation.

Question: Is it illegal to purchase a billboard and advertise a specific stock ticker?

Example: Someone from r/wallstreetbets claims to have purchased a giant digital billboard in Times Square that says, "$GME GOES BRRR", and shows a parabolic chart indicating the stock is "going to the moon".

Is that type of advertising illegal? I’m on the fence, but I cannot find anything that explicitly states it is.

Another example: a group of investors paid for the Tiger King lady, Carole Baskin, to do a shout out on Cameo. They asked her to shout out a stock ticker, which happened to be a veterinarian ticker, and it saw a price surge the group was able to capitalize on. That seems pretty sketch, in my opinion.

Thanks!

One Answer

You haven't given a country tag so I'll assume USA.

Absent something else, it is not illegal to advertise a stock ticker.

From Wikipedia: The US Securities Exchange Act defines market manipulation as "transactions which create an artificial price or maintain an artificial price for a tradable security".

You can't prevent people from giving their opinions on stock even if the opinions are completely unqualified. An opinion is not market manipulation even if it is on a billboard.

I suppose some kind of lie in the advertising could be illegal, but no one seems to care about lies these days...

Answered by gaefan on January 31, 2021

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