Pump-and-Dump Schemes – Article ( Articles ) Pump-and-Dump Schemes (PND) A Deceptive Game of Hype and Profit PND schemes are a form of market manipulation that preys on unsuspecting investors. These schemes involve artificially inflating the price of a stock or other asset through misleading information and hype, only to dump the inflated asset for […]
Category: Pump-and-Dump Schemes
Pump-and-Dump Schemes are fraudulent practices in the stock market where individuals or groups artificially inflate the price of a low-value stock through misleading promotions and exaggerated claims, creating a false sense of demand. This manipulation typically occurs through social media, newsletters, or online forums, enticing unsuspecting investors to buy in at inflated prices. Once the stock price has risen significantly due to this artificial demand, the perpetrators sell their shares at the peak (the “dump”), leading to a sharp decline in the stock’s value and substantial losses for those who bought in during the hype. These schemes are illegal and can result in severe penalties for those involved, including fines and imprisonment.