Pump And Dump Stock Scam: Stick To The Basics!

In this day and age, we are all trying to make a few extra bucks here and there. The stock market will always be an option, but you have to learn how to play the game or you could get taken for a lot of money. Sometimes the stock market is a slow burn and other times you could get a hot tip and make out with some big bucks. This is exactly what the scammers feed on. The Pump And Dump Stock scam could fool anyone who is not savvy enough to catch the signals that come with it.

You may get a stock tip for some independent company you have never really heard of that does something kind of vague or modern sounding. Now, let’s say you get this tip and the stock is at a low point. You could scoop up tons of shares and see if your tip would pay off. However, the scammers in this case could actually be the owners of the stock who are trying to pump the price by generating artificial buys on their own product. Believe it or not, there are ways to get away with such a thing that are correct on paper. Is it ethical? Not at all and it could cost you tons of hard earned bucks. Now once the stock is at a high is where the “dump” comes in. Since the shareholders pretty much set this scheme up, they sell all their shares at higher prices leaving the money you spent to go down the tubes.

You can easily avoid all this buy buying stocks from trusted sources or from companies you have heard of. You should also know better that stock tips like this hardly ever pay off to begin with. If you are a novice at the stock game then you should just stick to the basics.

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