Section 17(b)

Section 17(b) of the Securities Act — the anti-touting provision — makes it unlawful to publicise a security for compensation without fully disclosing who paid, and how much. It is the statute behind most paid stock promotion cases.

Also known as anti-touting provision. law and enforcement · updated 2026-09-08

Where does section 17(b) come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Paid stock promotion — Paid stock promotion is publicising a security in exchange for compensation, which is lawful only if the fact of payment, the payer and the amount are fully disclosed under Securities Act Section 17(b).
• Newsletter scalping — Newsletter scalping is recommending a security publicly while secretly selling it into the demand the recommendation creates, so that subscribers acting on the advice become the publisher's exit.

Enforcement actions involving these techniques

See also

• Section 17(a) — Section 17(a) of the Securities Act of 1933 prohibits fraud in the offer or sale of securities. Unlike Rule 10b-5 it reaches offer…
• Touting — Touting is publicising a security in exchange for compensation. It is lawful if the payment is fully disclosed and unlawful under …

Terms that refer here

Section 17(a) · Stock promoter · Touting

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