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Thursday, October 12, 2023 5:33:40 PM
"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.
Investor Protection Guide: Micro-cap Stock Fraud ("Pump and Dump")
https://www.law.cornell.edu/wex/investor_protection_guide_micro-cap_stock_fraud_%28%22pump_and_dump%22%29
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