Mitesco Inc. (MITI)

[Stockingstuffer12]

Unsuspecting investors then purchase the stock in droves, pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and innocent investors lose their money.

Fraudsters frequently use this ploy with small, thinly traded companies because it's easier to manipulate a stock when there's little or no information available about the company. To steer clear of potential scams, always investigate before you invest:

Here are a few steps you can take:

Don’t Believe the Hype
For investors, unbelievable investment opportunities can be public enemy number one. If you hear about an investment opportunity that sounds good to be true – whether on the Internet, through an email, a fax, a voice mail message, a text message – you name it. Listen to your – insert caring relative’s name here – and assume it’s a scam, unless you can prove through your own research that it is legitimate. And remember that the people touting a stock may well be insiders of the company or paid promoters who stand to profit handsomely if you trade.

Find Out Where the Stock Trades
Many of the smallest and most thinly traded stocks cannot meet the listing requirements of the Nasdaq Stock Market, the New York Stock Exchange, or other national securities exchanges. Instead they trade in the "over-the-counter" market and are quoted on OTC systems, such as the OTC Bulletin Board or the Pink Sheets. Stocks that trade in the OTC market are generally among the most risky and most susceptible to manipulation.