SEC Suspends PHOT, Advises Investor To Sell Pot Stocks While They Still Can

Trading in GrowLife (PHOT) has been suspended by the Securities and Exchange Commission because the regulator is concerned about “questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.”

That’s a polite way of saying they’re worried about potential securities fraud.

What a surprise.

Like all of the scores of marijuana stocks, PHOT is a penny stock that trades in the over-the-counter market.

Trading OTC in and of itself doesn’t make PHOT stock bad — several legitimate foreign blue-chips such as Nestle (NSRGY) do the same thing. But the problem with the OTC market is that there’s no way to tell the good guys from the bad. A lack of oversight makes it a haven for pump-and-dump scammers.

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