Gregory Barton Rice, a major shareholder, acquired 500,000 shares of Investview (NASDAQ: INVU). With his purchase at an average price of $1 per share, Rice now holds 563,609 shares.
He disclosed the buy-in in a filing with the Securities and Exchange Commission in compliance with SEC requirement that major shareholders who own 10 percent or more of the company’s stocks must disclose their transactions with the SEC.
Investview, which traded down 34.31 percent on Friday, is an investor technology and education company.
In March, as part of the company’s effort to education the public on investment, it entered into a strategic partnership with TraderOS LLC to provide social collaborative trading tools to its wide network of individual investors.
Dr. Joseph Louro, chief executive officer of Investview, said in a statement, “As the social investing sector is experiencing huge growth it’s important for us to be positioned now to capitalize on the growth in the future. Our goal at Investview has always been to provide the best investor education for our members and we feel strongly that his new platform will help us to continue to deliver on that promise.”
Under the new platform, investors could exchange ideas on a private network and view premium content, in the process increasing user engagement and user retention to boost revenue via the sale of subscription-based services.
In November 2013, Investview announced the execution of a distributor agreement with Wealth Generators, an investor education and trade strategy company that deploys its products through a network marketing distribution model.
The importance of investor education was highlighted with the holding of the 6th joint investor education conference in Washington, D.C. organized by the International Forum for Investor Education and the International Organization of Securities Commissions (IOSCO) in May 2014 with more than 120 attendees from over two dozen nations.
IOSCO Secretary General David Wright said in a statement that securities markets are now becoming much more important for financing the global economy.
More people are turning to retail investment to boost their financial securities as incomes shrink due to inflation. However, with so much financial products available on the market such as stocks, bonds, mutual funds, exchange traded funds and futures and foreign exchange, the first-time investor could get lost in the technical world of investing as well as the industry jargon.
That would explain why more finance and investment companies such as Investview, banks and brokerages are including investor education program as a vital component of their services.
Various studies have shown that the salary of the average American declined to only 51 percent from 59 percent of personal income in 1980, underscoring the need for people to find alternative sources of financial security outside a regular salary and savings in the bank whose value erodes over time because of inflation.
Thus, while a recent Wells Fargo survey of American adults between the ages of 22 and 33, or the so-called millennials, are actively saving for their retirement, only 59 percent point to the stock market as the best place to park their retirement savings. In contrast, two-thirds of baby boomers, or those born between 1946 and 1964, have invested in stocks and are benefitting financially from their early investment decision, no doubt a result of their financial literacy.