What is a pump and dump stock? A pump and dump stock is a stock that is promoted with false or misleading information to artificially increase its price. Once the price has increased, the people who promoted the stock sell their shares and the price falls. How do pump and dump schemes work? Pump and […]
What Is Pump And Dump In Stocks
Pump and dump is a form of securities fraud involving the artificial inflation of a stock price by spreading false or misleading information to create a buying frenzy, followed by a sudden sell-off to leave investors with heavy losses. The stock is “pumped” up by aggressive promotion to attract buyers, and then “dumped” when the […]
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