Pump and dump

<p>Pump and dump (P&D) is a form of <a href="/facts/Securities_fraud/u69MNnPX">securities fraud</a> that involves artificially inflating the price of an owned <a href="/facts/Stock/Qa912YwX">stock</a> through false and misleading positive statements (pump), in order to sell the cheaply purchased stock at a higher price (dump). Once the operators of the scheme "dump" (sell) their overvalued shares, the price falls and investors lose their money. This is most common with small-cap <a href="/facts/Cryptocurrency/Rg6JAS8y">cryptocurrencies</a> and very small corporations/companies, i.e. "<a href="/facts/Microcap_stock_fraud/aDfgpSdd">microcaps</a>".
</p><p>While fraudsters in the past relied on <a href="/facts/Cold_calling/Fvrwky5E">cold calls</a>, the <a href="/facts/Internet/Xw1rVvJU">Internet</a> now offers a cheaper and easier way of reaching large numbers of potential investors through <a href="/facts/Email_spam/ARJr6Aem">spam email</a>, <a href="/facts/Securities_research/7R9dzSRd">investment research</a> websites, <a href="/facts/Social_media/kUIkfpIA">social media</a>, and misinformation.
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Pump and dump open-in-new

Pump and dump