What is promoter

In relation to investment activities, a promoter has the responsibility of raising money for the investment. Aside from raising money, the promoter can also offer investment vehicles to the company. The aim of the promoters is to raise capital or funds for the project at hand, this requires coming up with information that convince investors or contributors to give financial support. In a bid to raise funds, investment promoters attract investors to the uniqueness of their investment, these investors can be domestic investors or foreign investors.

Written by Jason Gordon Updated at September 24th, Contact Us If you still have questions or prefer to get help directly from an agent, please submit a request. Please fill out the contact form below and we will reply as soon as possible. What Does a Promoter Do? Types of Promoters There are different types of promoters, the most popular types include the following; Casual Promoters: These are promoters birthed out of support for the brand or business, they patronize. For instance, the customers of a business that has good experience with the company can become casual promoters of the ompna, even without the knowledge of the company.

My characterization of radio host Alex Jones a frequent promoter of the Pauls sparked outrage among his devotees. Eventually though, Wiles was suspended for "conduct unbecoming to a Promoter of the Miss Gay America pageant system. Parliament is often more easily persuaded than the shrewd investor, as many a too sanguine promoter knows. In his life's story there were no paragraphs that old Maddy was a hoarder of gold or a promoter or exploiter of things found. Davy had planned to ride over to the B-line, and go over his speech-plans with his manager and promoter.

Ever the promoter of education and culture, he was himself a man of learning in various branches, and a poet of no mean talent. New Word List Word List. Save This Word! See synonyms for promoter on Thesaurus. List of Partners vendors. A stock promoter is an individual or organization that helps raise money for some investment activity.

Stock promoters may raise money for a company by offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often, promoters are paid in company stock, or they receive a percentage of the capital raised. Investment promoters bring information about a specified investment to the attention of potential investors. They may target domestic or foreign investors depending on the investment in question.

The goal is to locate capital that may have otherwise been invested elsewhere based on the limited knowledge available about the promoted investment opportunity. The goal of stock promoters is to locate capital. Information is distributed to attract potential investors to the stock.

However, that information is often misleading. The use of stock promoters is fairly common in the penny stock market.

Promoting activity can include positive testimonials or other information provided for free via a website or newsletter, as well as more personal sales attempts. By increasing excitement surrounding the particular investment, the demand for the shares is likely to increase, pushing up the share price. This generates additional revenue for the business by allowing certain shareholders an opportunity to sell their shares at a higher price.

Department of Commerce—assist U. This can include assistance with promotional activities and issues surrounding the exportation of goods. A business's customers can become casual promoters. If a customer has a good experience with a product or service, that customer may share that information with other potential customers or investors. The investments promoted by individual promoters or promotion firms are not formally registered with the Securities and Exchange Commission SEC and many are linked to investment scams.

Promoters may give the false impression that investing in the represented opportunity is more likely to succeed than others, even to the point of suggesting that it cannot fail. The same risks exist with promoted investment opportunities as with any similar style of investment. Because the investments promoted by individual promoters or promotion firms are not formally registered with the Securities and Exchange Commission SEC , some promoters have been linked to an inordinately high number of investment scams and litigation.

Thus, not all stock promotion activities are considered legal. For example, in , a stock promoter, Jason Wynn, and the chief executive officer CEO of the promoted company, Martin Cantu of Connect-a-Jet, were found guilty of securities fraud.

Further risks exist where certain writers are compensated for promoting a particular investment. In situations where a person is compensated to review a particular stock, there are concerns that the information provided is skewed and is more positive about the investment than may be appropriate. Stock promoters are not required to have licensing or educational credentials. Stockbrokers, on the other hand, require at least a bachelor's degree and must be licensed.

Penny stock companies are less tightly regulated than big companies, and they are traded less often, which encourages market manipulation. The SEC and Department of Justice investigate and prosecute stock promoters for criminal and civil violations every year. A promoter is an individual or organization that helps raise money for some investment activity, such as penny stocks. Stock promoters are individuals or companies hired to create media buzz and increase the demand for a stock. This artificially inflates the share price, and the company gains capital.

An example of a promoter is a penny stock promoter.