50 Cent Probably Didn't Violate Any Securities Laws When Hyping A Penny Stock Via Twitter
This is a relief.
Over the weekend, the popular rapper 50 Cent urged his 3.8 million Twitter followers to buy the stock of a microscopic company in Florida. The penny stock jumped 290 percent on Monday. The rapper, who owns 7.5 million shares and warrants for 22.5 million more in the company, had a paper profit that was briefly worth almost $5.2 million on paper. The company, H&H Imports, sounds like it might be related to the famed maker of New York bagels. No such luck. H&H is a Clearwater, Fla., company that distributes headphones favored by Curtis Jackson, the real name of rapper 50 Cent. It's the parent company of TV Goods Inc., which markets its products through infomercials and the QVC channel, has virtually no revenue ($293,000 in its most recent quarter), and loses money. "HNHI is the stock symbol for TVG there launching 15 different products. they are no joke get in now," went one promotional tweet [2] from the rapper.
So far, 50 Cent appears to have avoided violating laws against [pump and dumps] because he has not sold H&H stock.
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