capital raising, page-23

ML - put up factual info (especially if it's new info) and I'm sure plenty of people will appreciate.
That said basically no-one uses Black-Scholes to make buy/sell decisions. There's plenty written on this but just google 'Volatility Smile' as a starting point. Your average stock broker will just change the subject if you bring it up. Your average forum poster will just laugh.
Also it doesn't make sense to blame this forum for your friends investing error(s) - if they invested solely on the basis of forum posts then a) this is just a horrible way to make investing decisions and they have learnt a good lesson and b) they can come complain themselves if they must.
I understand that it is no fun watching friends lose money, or losing it yourself, but that is a reasonable result if you rely on internet forums as a foundation for investment.

Again: most of us appreciate factual contributions made on these forums, that's why we're here: to pick up things we may have missed in other research - but we use it as a starting point and verify information coming through before taking action.