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Sunday, 12/29/2024 2:40:47 PM

Sunday, December 29, 2024 2:40:47 PM

Post# of 28717
GDVM: .013 Friday Close. Be careful folks people are watching. Market Manipulation: Penny stocks are particularly susceptible to manipulation because they often have low liquidity and are not subject to the stringent regulations that larger, exchange-listed stocks are.

Some traders might deliberately spread negative rumors or misinformation (bashing) about a company to drive its stock price down. Once the price drops, these traders can buy the stock at a lower price, anticipating a future increase. This tactic is part of what's known as a "pump and dump" scheme, where the same traders might later promote the stock to inflate its price before selling for a profit.

In essence, bashing to buy lower in penny stock trading is largely about exploiting the inherent risks and lack of oversight in the penny stock market for personal gain, often at the expense of less informed or more reactive investors. However, this practice is risky, not only because of the potential for legal repercussions but also due to the unpredictable nature of penny stocks themselves.
Bullish
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