Legal exposure in publishing stock predictions
<p>I was told that there might be legal aspects that I'm not aware of so I'm asking this question. </p>

<p>Since late November two AIs I've built have been generating predictions about stocks found on the NASDAQ. I've been publishing these predictions and their results on a simple WordPress site. </p>

<p>Looking around I see multiple people appending predictions with statements such as "Please do your due diligence". Doing a little research, I found that it is because they believe that there are legal ramifications to providing finical advice and that this line will absolve them of any legal responsibility.</p>

<p>I would like to know if:</p>

<p>a) These people (people who make predictions) are correct to fear that others (complete strangers) might make a financial decision based on the prediction (or some action) and then take legal action against them (the person who made the predictions). </p>

<p>b) If the above is true. Does adding the line (or variation) "Please do your due diligence" absolve them of legal responsibilities or is it as effective as a "Sovereign citizen" defense. I know of no known case where this defense worked. AKA: For a chance of success in court do not use this defense. </p>

<p>At the end of the day, I want to learn and create AIs and share my experience and growth in this field. The stock market is easy in terms of access to data and the ability to validate predictions (easier than building a chess AI). Because I chose this field it seems that I need to do some due diligence and figure out what is my legal exposure. </p>

<p>On my site, in the about section, it does describe that my project is a learning experience for me.</p>

<p>Added info in case it helps: I'm in Canada and the AIs are predicting stocks on the NASDAQ.</p>

<p>If you just do it for the informational value you should be fine. Plenty of people form what are called investment clubs and give each other views on how to invest.
<a href="https://www.sec.gov/reportspubs/investor-publications/investorpubsinvclubhtm.html" rel="nofollow noreferrer">https://www.sec.gov/reportspubs/investor-publications/investorpubsinvclubhtm.html</a></p>

<p>The laws meant for regulating investment advice normally apply when you do it for money to the general public.
<a href="https://www.investopedia.com/articles/professionals/041013/becoming-registered-investment-advisor.asp" rel="nofollow noreferrer">https://www.investopedia.com/articles/professionals/041013/becoming-registered-investment-advisor.asp</a></p>

<p>The due diligence thing doesn't 100% absolve an advisor from liability, but you want to take all the steps you can. That applies to people doing it for fun outside of a career. No person or computer is 100% in the stock market and you shouldn't blindly trust anyone.</p>

<p>As long as the person you advise is not a client of yours, you can issue advice. It's the same as people talking about what stocks they like at work.</p>

canada liability