Key Takeaways Pump-and-dump is an illegal scheme

Key Takeaways
Pump-and-dump is an illegal scheme to boost a stock's or security's price based on false, misleading, or greatly exaggerated statements. Pump-and-dump schemes usually target micro- and small-cap stocks. People found guilty of running pump-and-dump schemes are subject to heavy fines.

Can you pump a stock?
In a pump and dump scheme, fraudsters typically spread false or misleading information to create a buying frenzy that will “pump” up the price of a stock and then “dump” shares of the stock by selling their own shares at the inflated price.

Is pump and dump a federal crime?
Pump and dump schemes have been around for many years, but have recently become prevalent through global internet use. Treated as a form of stock fraud, pump and dump schemes are a white-collar crime that is prosecuted by federal authorities and can lead to large fines.

Can you go to jail for pumping stocks?
Market manipulation including pump and dump scams is illegal on both the federal and state level and penalties if convicted could include a lengthy prison term.

Fake stock analyst giving financial advice...