InvestorsHub Logo
Followers 0
Posts 644
Boards Moderated 0
Alias Born 06/16/2014

Re: None

Monday, 02/01/2016 10:19:42 AM

Monday, February 01, 2016 10:19:42 AM

Post# of 17001
Stock Dilution Scam:

A share dilution scam happens when a company, typically traded in unregulated markets such as the OTC Bulletin Board and the Pink Sheets, repeatedly issues a massive amount of shares into the market for no reason, considerably devaluing share prices until they become almost worthless, causing huge losses to shareholders. Then, after share prices are at or near the minimum price a stock can trade and the share float has increased to an unsustainable level, those fraudulent companies tend to reverse split and continue repeating the same scheme.
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.