FAT CATS

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"Insiders Own Large Amounts of the Stock" In many microcap fraud cases — especially "pump and dump" schemes — the company's officers and promoters own significant amounts of the stock. When one person or group controls most of the stock, they can more easily manipulate the stock's price at your expense. You can ask your broker or the company whether one person or group controls most of the company's stock, but if the company is the subject of a scam, you may not get an honest answer.


From :
Microcap Stock: A Guide for Investors

Full read here:
http://www.sec.gov/investor/pubs/microcapstock.htm