I was asked to explain to MMTE investors how a pai

I was asked to explain to MMTE investors how a paid promotion typically works, and what the effect might be.

Typically, a paid promoter is hired to drive up interest in a company and their stock.  The promoter is promised a sum of money for their efforts, and can sell stock at whatever price they can fetch until the agreed upon sum is reached (any amount of shares may be sold).  If the interest generated is large enough, share prices may only drop a little during the time period the promoter is selling to obtain their fee.  However, if the volume stalls, or does not generate the interest expected, share prices may drop a lot.  Sometimes, the company and the promoter include a clause that states a certain volume must be generated by the promotion before the full amount can be collected.  However, some fee must be collected regardless of how well the promotion works.

The result, typically a stock will rise during a promotion, and then dive as the promoter's fee is collected by selling shares at whatever price they can fetch.  The trick, if one is game for such a trade, is to get in early and get out before the selling starts --- this is often easier said then done.