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Re: scon post# 112221

Thursday, 05/05/2011 10:33:57 AM

Thursday, May 05, 2011 10:33:57 AM

Post# of 289427

Microcap fraud encompasses several types of investor fraud:

Pump and dump schemes, involving use of false or misleading statements to hype stocks, which are "dumped" on the public at inflated prices. Such schemes involve telemarketing and Internet fraud

Dump and dilute schemes, where companies repeatedly issue shares by no valid reason other than than taking investors' money away. Companies using this kind of scheme tend to periodically reverse-split the stock.



http://en.wikipedia.org/wiki/Microcap_stock_fraud