"Short & Distort" is Fraud ! Any investigation wou
Post# of 11107
Posted On: 09/19/2015 9:35:38 PM
"Short & Distort" is Fraud ! Any investigation would look at how, for no apparent reason given all that DSUS has going for it, the stock was driven down to below .01 at one stage - albeit very temporarily.
"Short and Distort
Another scam that penny stocks may be vulnerable to is the “short and distort” scam. In a short and distort scheme, the scammers make a short sale of penny stocks, getting paid for the stocks at their current price. Then, the scammers spread false or negative information about the stock in order to get other investors to sell, driving down the price. Once the price is down, the scammers buy back the stock they sold in the short sale, but at a lower price, meaning they make a profit. By spreading negative or false information in order to lower the price, the scammers have committed fraud.
A short sale occurs when a seller sells a number of stocks that they do not own, with the stipulation that they will later buy the same number of stocks. This can be done by a seller borrowing the stocks from a brokerage firm, selling them, but then later buying the same number of stocks and returning them to the firm. Short sales are legal, but using a short sale in conjunction with falsely spreading negative information is fraud."
"Short and Distort
Another scam that penny stocks may be vulnerable to is the “short and distort” scam. In a short and distort scheme, the scammers make a short sale of penny stocks, getting paid for the stocks at their current price. Then, the scammers spread false or negative information about the stock in order to get other investors to sell, driving down the price. Once the price is down, the scammers buy back the stock they sold in the short sale, but at a lower price, meaning they make a profit. By spreading negative or false information in order to lower the price, the scammers have committed fraud.
A short sale occurs when a seller sells a number of stocks that they do not own, with the stipulation that they will later buy the same number of stocks. This can be done by a seller borrowing the stocks from a brokerage firm, selling them, but then later buying the same number of stocks and returning them to the firm. Short sales are legal, but using a short sale in conjunction with falsely spreading negative information is fraud."
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"Per Ardua Ad Astra" - "Through Adversity To The Stars"
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.