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clock Created with Sketch. 05/06/25
08:26
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Originally posted by Johnnykb:
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'Pump and dump' activity occurs when a person buys shares in a company and starts an organised campaign to increase (or 'pump') the share price. They then sell (or 'dump') their shares and make a profit, while the other shareholders suffer financial losses as the share price falls.People running a 'pump and dump' often use social media and online forums to create a sense of excitement about a stock or to spread false news about the company's prospects. This excitement and interest artificially drives the price up as they lure investors.
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How does the pump and dump merchant manage to convince independent brokers and media to issue positive guidance for a stock. Do they pay them?
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