RE: What’s Happening??12 Jan 2024 08:52
N a pump and dump scheme, a group of people artificially inflate the price of a stock by buying it up and then selling it off at a higher price, leaving the newbie investors holding the bag.
To carry out a pump and dump scheme, the perpetrators will typically spread false or misleading information about the stock, such as claiming that it is undervalued or that there is a major development in the company's future. They may also create fake social media accounts or websites to promote the stock. we all know about the fake websites!
Once the price of the stock has been inflated, the perpetrators will sell their shares and take their profits, leaving other investors to suffer losses when the price of the stock falls.