Slorke: Please read the definition instead of posting information you find readily available on the internet and then cut and paste,calling it DD which it is NOT. The key elements of illegal activity are (1) False or exaggerated (2) purchase stock at a lower price. There are TWO elements involved for it to be illegal. Secondly, (1)basher is generally paid (2) basher will then purchase the stock. Once again, there are TWO vital elements.
Now, you presented only one-half of the equation. The second part is relative to pumpers, as per the SEC:
One of the most common Internet frauds involves the classic "pump and dump" scheme. Here's how it works: A company's web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest "hot" stock. Messages in chat rooms and bulletin board postings may urge you to buy the stock quickly or to sell before the price goes down. Or you may even hear the company mentioned by a radio or TV analyst.
Unwitting investors then purchase the stock in droves, creating high demand and pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money.
Fraudsters frequently use this ploy with small, thinly traded companies because it's easier to manipulate a stock when there's little or no information available about the company. To steer clear of potential scams, always investigate before you invest:
Consider the Source
When you see an offer on the Internet, assume it is a scam, until you can prove through your own research that it is legitimate. And remember that the people touting the stock may well be insiders of the company or paid promoters who stand to profit handsomely if you trade.
9 CKYS buys from October 13, 2006 to December 13, 2006. Still bagholding!
