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Wednesday, 03/09/2011 2:16:35 PM

Wednesday, March 09, 2011 2:16:35 PM

Post# of 33129
Lest's get real here with GSRE. It is nothing more and nothing less than the OLD "Pump and dump" scheme, also known as "hype and dump manipulation", which involves the promotion of a company's stock through misleading or outright false statements to the marketplace. After "pumping" the stock, the scammers make huge profits by selling their cheap stock into the market. Fraudsters frequently use this ploy with small, thinly traded companies—known as "penny stocks," generally traded over-the-counter as Pink Sheet stock, rather than markets such as the New York Stock Exchange or NASDAQ—because it is easier to manipulate a stock when there is little or no independent information available about the company.
This often occurs through internet promotion. A scammer will send a message telling people to hurry and buy the stock before the price goes "To the moon". They'll usually claim to have "inside information". In reality, they are usually company insiders or paid promoters. Unwitting investors then purchase the stock, creating high demand and raising the price. This seemingly "real" rise in prices can entice more people to believe the hype and to buy shares as well.
Once the fraudsters "dump" their stock by selling it at the inflated price, they will stop hyping the stock, and the investors lose money.
They then change their name and management and REPEAT the above process!
Sound familiar?



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