To crack down on investment misinformation that appears on company Web sites, the International Organization for Securities Commission is planning to sweep financial sites before spring. First, the group plans to survey sites to see if what they post is in accordance with federal guidelines; then they will sweep the ones that fall short of proper disclosure.
In related news, investor relations professionals unaware of cyber-smearing may be hurting gains in their company's stock. The Securities and Exchange Commission is concerned about the tactic because its use is on the rise.
In short, cyber-smearing is the attempt to downgrade the value of a company's stock for reasons of selling short or for revenge by a disgruntled ex-employee. It takes place on electronic bulletin boards where people post erroneous information about a company or, as happened recently, will impersonate an SEC official ordering corporate officials not to leave town (implying they are under investigation).
Combative measures against cyber-smearing can be found in the Dec. 20 issue of PR NEWS. (http://www.sec.gov.)