This will be a quick post, but I wanted to see what people thought about this.

http://new.music.yahoo.com/blogs/thatsreallyweek/130325/jan-10-16-50-cent-uses-twitter-to-make-87-million-in-one-day/

For those of you who don’t want to read it, Fiddy basically caused the price of penny stock H&H Imports to nearly quadruple in a single day.  Now, Fiddy has some influence, so his Tweet could be seen as a market manipulation.  The Yale professor is clearly on Fiddy’s side, saying that since he didn’t sell his stock, he wasn’t just trying to make a quick buck.  However, there are larger investors that would love to have a 400% gain in one day.

Take note that 50 Cent’s net worth increased by nearly $9 million in a single day.  That’s a good ROI (return on investment) any way you slice it.

Clearly, Fiddy not only talked about it being a great company, but also specifically said you would double your money. While the esteemed 50 cent (I personally like his music) is not licensed and is not required to watch what he says, his influence can cause people to buy a stock when the value of the stock is not worth the price they pay.  At some point, someone will figure out that they can make money by simply knowing what Fiddy is going to say.

Does it now become illegal if I follow 50 around and buy the securities he is going to talk about?  What is the difference between one man using a large amount of influence and twenty people getting together, going into chat rooms and pump up the price of the stock?

Post your answers.  I’d be interested to see.