Fannie Mae-No Politics (FNMA)

[along4zride]

CLASSIC PUMP AND DUMP (FNMA)

I STUDY FINANCE AT A MAJOR UNIVERSITY AND (FNMA) HAS

ALL THE CHARACTERISTICS OF THE PUMP AND DUMP SCHEME.

"Pump and dump" is a form of stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements,(LIKE FNMA WILL BE RELEASED FROM CONSERVATORSHIP) in order to sell the cheaply purchased stock (FNMA)at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money. Stock message boards that purport to offer unbiased recommendations then tout the company as a "hot" stock. Messages in chat rooms urge readers to buy the stock quickly.Fraudsters frequently use this ploy with "penny stocks," generally traded over-the-counter (in the United States, this would mean markets such as the OTC Bulletin Board or the Pink Sheets), rather than markets such as the New York Stock Exchange (NYSE) or NASDAQ—because it is easier to manipulate.

I HOPE THIS HELPS