Friday, March 19, 2021 11:29:50 AM
"First, fraudsters load up on ultracheap shares of a small stock hardly anyone trades. Then comes the pump: They pitch the stock as one with hot prospects, spreading around positive information to push up its price. Finally, there’s the dump: After the price jumps higher, the perpetrator sells and leaves the new buyers holding a mostly empty bag.
“It’s all just a pool filled with sharks,” said Urska Velikonja, a law professor who studies securities regulation at Georgetown University Law Center. “It’s where the unwary go to get eaten.”
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