Cracking Down On Chop Stocks
I read "Investors beware: Chop stocks are on the rise" (Finance, Dec. 15) with close attention and fear. It is surprising that so many institutions participate in these schemes. A legal variation of this theme is carried out by brokers who constantly promote stocks of companies they are doing business with. More to the point, they may not even put a penny into these stocks themselves, or they may sell them at the earliest sign of trouble, pushing them on unsuspecting customers.
Your article about the chop-stock business was an impressive description of what is going on in this field. If you had written it two years earlier, I would have saved a lot of money.