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I think that even if there weren't specific laws against misleading investors, then they would probably be violating some consumer fraud laws.

Companies that offer investment advice to their clients are held, under the law, to have a *fiduciary responsibility* to provide the most accurate advice possible. For a licensed broker to intentionally deceive their clients about the desirability of a stock is both criminal and a cause for civil action.

This, by the way, is one reason that discount brokers make a huge deal about trades being "unsolicited" and disclaiming any advisory role.

-- Mark
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