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Friday, May 27, 2016 1:34:50 PM
It's easier to manipulate a stock when there's little or no information available about the company.
Microcap fraud depends on spreading false information. Here's how some perpetrators carry out their scams:
Questionable Press Releases. Con artists often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services.
Internet Fraud. Con artists often distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. They also use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies.
http://www.darellipruzansky.com/investment-strategies.php?item=95&catid=28&cat=Penny%20Stocks:%20How%20To%20Investigate%20Them%20and%20Avoid%20the%20Traps
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