SEC Office of Investor Education Publishes Bulletin on "Microcap Stock Basics"

The SEC Office of Investor Education and Advocacy issued an Investor Bulletin on "microcap stock basics." The Investor Bulletin provided a brief overview of how to adequately research microcap companies which are often known as penny stocks. The Investor Bulletin recommended that investors should access current research information from:

• the microcap company directly (particularly though its website), noting its management;
• the SEC through its EDGAR database;
• their own state's securities regulator (or the regulator for the state where the company is located);
• other government regulators, such as the Federal Reserve System, the Office of the Comptroller of the Currency or the FDIC;
• reference books, websites and commercial databases; and
• the Secretary of State where the company is incorporated to determine whether the company is in good standing.