The Question and Answer Board

[sunspotter]

I would simplify things by saying the distinguishing hallmark of a penny stock scam is that it exists primarily to enrich a small group of insiders who are usually supported by undeclared stock promoters who are strangers to the truth.

They are zero sum games and as such the antithesis to the real generation of wealth, that is Capitalism.

Their progenitors and the pimps who promote them are in effect at best criminals and at worst seek to undermine our society’s values.

One reason pumper clowns hate the so-called bashers is that in fact they often do liaise with the SEC and the stock in question gets suspended and the crooks behind the scam charged- I can think of at least ten penny stocks where this has happened, and others will think of many more.

A good place to start educating oneself on this type of fraud is the SEC’s own website.

Here’s just one example:

https://www.sec.gov/oiea/investor-alerts-and-bulletins/social-media-and-investment-fraud-investor-alert