How Does a Pump and Dump Scam Work?


A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement.

The stock is usually promoted as a “hot tip” or “the next big thing” with details of an upcoming news announcement that will “send the stock through the roof.” The details of each individual pump and dump scam tend…



https://www.investopedia.com/ask/answers/05/061205.asp?utm_campaign=rss_headlines&utm_source=rss&utm_medium=referral