FINRA Warns Investors of E-Cigarette Stock Scams

FINRA issued an Investor Alert ("Alert") titled "E-Cigarette Stock Scams: New Smoking Technology Could Light up Pump-and-Dump Fraud." The Alert is intended to warn investors about aggressive promotions touting stocks that claim to capitalize on the e-cigarette and vaporizer, or "vape," market.

The Alert follows the SEC's recent suspension of trading in the securities of a company that purported to make disposable electronic cigarettes. The SEC suspended trading because of its concerns about manipulative activity related to the company's common stock.

The Alert provides a series of tips to help investors to avoid potential stock scams, and urges investors who receive offers containing exaggerated or misleading claims to contact FINRA.

See: FINRA Investor Alert; FINRA Press Release.