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Re: rrb123 post# 55836

Monday, 01/21/2019 12:52:54 AM

Monday, January 21, 2019 12:52:54 AM

Post# of 186029
Vrus! .."Pump and Dump" is a type of stock fraud involving the use of false or misleading statements to increase stock prices and then sell the inflated stocks to the public. Stocks of microcap companies, which have low capitalizations and limited assets, are highly vulnerable to “pump and dump” because they can be easily manipulated. Microcap stocks often lack reliable public information about the company and have a limited historical record. Many of them trade on the over-the-counter (OTC) markets such as the OTC Bulletin Board (OTCBB) or OTC Link LLC (OTC Link). OTC markets lack transparency in trading and have lax financial standards.

A typical “pump and dump” scheme begins with stock promoters loading up on stock of a microcap company.

https://www.law.cornell.edu/wex/investor_protection_guide_micro-cap_stock_fraud_%28%22pump_and_dump%22%29

Greater share quantity and not breaking even in revenue equates to diminished investor value.