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Saturday, October 05, 2024 4:53:33 PM
Investopedia: How Does a Pump-and-Dump Scam Work?
A pump-and-dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of their endorsement.
KEY TAKEAWAYS
• Pump-and-dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading, or greatly exaggerated statements.
• The favored medium of communication for traders involved in pump-and-dump is social media platforms or anonymized messaging apps like Telegram and Discord.
• Promoters of the scheme will then begin to coordinate rumors, misinformation, or hype in order to artificially increase interest in the security, driving up its price.
• Then, once the price of the stock has been increased sufficiently by unsuspecting marks, the promoters then sell the stock at high prices.
It is clear the intent of a pump-and-dump scheme is to MAKE MONEY, correct? So if a person loses almost all of their investment, how are they a pump-and-dumper? I'm still waiting for the intellects here to explain that, while at the same time claiming this was a pump-and-dump stock. Seriously, answer the question. Or continue to post false claims based on ignorance and personal bias. Some here are blaming others for their losses. Some here lost in GC's previous company, Amarantus, and yet invested again. How is that anyone's fault besides your own?
I posted the news of Todos Medical's insolvency hearing in Israel. I held my shares for a few months to see how that worked out. I sold my shares over 4 days in February 2024 and posted here that I have exited my entire position. I've posted my losses and how I intend to recover those via an investment in Novavax, where I rolled the approximately $8K I recovered from my Todos shares. So once again I ask, how was this a pump-and-dump scheme and where did I profit?
Summary of my closed TOMDF positions with Fidelity, printed today. See any profits in my TOMDF sales? Time for the geniuses to step up and enlighten the board on how this was a pump-and-dump. Enlighten us.
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