21 Investing Principles Utilized by Peter Lynch 3 Ways Investor Expect to Profit through Stocks

3 Reasons to Avoid "Hot Stock" Tips

Avoid tips on specific "hot stocks" for these reasons:
1. Inside information which if acted upon could result in fines, jail time or both for the investor as well as the financial professional.
2. Rumors which if true and acted upon could later be construed as inside information or if false could net a loss or be construed as market manipulation-either way you lose.
3. Public information which, by the time you hear it, has lost its value.
Source: http://www.investorguide.com/igu-article-825-stock-basics-hot-stock-tips-what-to-be-wary-about.html