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Posted On: 11/28/2024 2:12:50 PM
Post# of 85913
Re: riskreward007 #85477
Pump-and-dump scheme: What it is and how to avoid one
https://www.bankrate.com/investing/pump-and-dump-scheme/
A pump-and-dump scheme is a form of market manipulation and financial fraud in which members of a group buy a security and then convince others to buy it, too. The point is to illegally “pump up” the price of a stock, cryptocurrency or other type of hyped investment. But before long, the price rapidly retreats and the pump scheme quickly turns into a dump.
The insiders then spread false or misleading information about the company to increase the demand for the stock and drive up the price.
Pump-and-dump schemes are often based on hype and speculation rather than sound business or investing practices.
"Just My Simple Opinion"
https://www.bankrate.com/investing/pump-and-dump-scheme/
A pump-and-dump scheme is a form of market manipulation and financial fraud in which members of a group buy a security and then convince others to buy it, too. The point is to illegally “pump up” the price of a stock, cryptocurrency or other type of hyped investment. But before long, the price rapidly retreats and the pump scheme quickly turns into a dump.
The insiders then spread false or misleading information about the company to increase the demand for the stock and drive up the price.
Pump-and-dump schemes are often based on hype and speculation rather than sound business or investing practices.
"Just My Simple Opinion"
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