Investor Education Centers of America Announces the Launch of a New Website: Penny Stocks Exposed

Investor Education Centers of America (IECA) launches a new website, designed to aid investors in spotting, avoiding and reporting penny stock fraud.

Washington, DC, December 12, 2007 --( Investor Education Centers of America (IECA) announced the launch of a new website, to expand its Internet presence. The site was officially launched on Friday, December 7, 2007 and will serve as an informational hub for penny stock investors worldwide. Visitors to the new IECA site will have the convenience of viewing up-to-date information pertaining to microcap stocks, known fraud schemes, latest convictions and advice on spotting, avoiding and reporting penny stock fraud.

This user-friendly website provides priceless information and case references to help current and potential microcap stock investors in correctly evaluating risks involved in over-the-counter stocks trading on Pink Sheets. Pink Sheets is the Wild West of Wall Street, with endless opportunities that provide a fertile breeding ground for penny-stock scams. Pink Sheets is a computerized bulletin board of penny stock trading companies, which allows investors and brokers to buy and sell stocks outside of one of the major (NYSE, NASDAQ, or AMEX). Penny stocks are considered extremely speculative, which is especially true for those that trade on low volumes over the counter. The Securities and Exchange Commission provides guidance and warnings to penny stock investors, stating in part, "Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Because it may be difficult to find quotations for certain penny stocks, they may be impossible to accurately price. Investors in penny stocks should be prepared for the possibility that they may lose their whole investment”.

Modern day technology streamlined the task of reaching millions of investors via e-mail, text messages and faxes. Several years of relatively poor returns from legitimate stocks added to the attraction of penny stocks. People with the "get rich quick" lottery mentality are willing to risk their investment, in hopes of making millions for pennies. Like any promise that sounds too good to be true, unreasonably high hopes often lead to major losses. The new website,, strives to prevent losses resulting from the most common types of penny stock fraud by exploring recent convictions, trends and developments in the world of microcap stocks.

IECA encourages all visitors to their new website to review the SEC Guide for Microcap Investors, compiled by the SEC's Office of Investor Education and Advocacy:

For further information, visit the website

Investor Education Centers of America
Michael Nogard