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Path: utzoo!linus!decvax!harpo!eagle!mhuxl!mhuxi!houxm!houxf!cfk
From: cfk@houxf.UUCP
Newsgroups: net.invest
Subject: Re: First Jersey Securities
Message-ID: <505@houxf.UUCP>
Date: Wed, 26-Oct-83 09:45:34 EDT
Article-I.D.: houxf.505
Posted: Wed Oct 26 09:45:34 1983
Date-Received: Thu, 27-Oct-83 05:29:17 EDT
Organization: Bell Labs, Holmdel NJ
Lines: 13

First Jersey and their president, Brennan(?),
have been in hot water with the SEC for allegedly
manipulating stock prices. Supposedly, their
brokers are told to push a stock. The brokers
call their accounts and tell them the stock is on
the move and they should buy immediately. If enough
people do this, the price is run up and FJ clients
can sell out at a profit. The hitch in this is that
there is sometimes no basis for the buy recommendation
except to run up the price (allegedly). Is this
bad for the client or simply illegal for the broker?
I guess it depends on who is caught holding the bag.