SEC's White cautions about tech companies' growth claims

11/6/2013 | Reuters

Mary Jo White, head of the Securities and Exchange Commission, says investors should be more wary of growth claims by technology companies. "Consider a company that correctly claims it has a hundred million users, and that the rate of user growth is expected to continue to grow at double-digit rates. That certainly sounds good and it would seem to bode well for the prospects of the company. But what if only a fraction of those users are paying customers?" White said.

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