A scheme to make prearranged "sales" of SECURITIES under Rule 504 of Regulation D. The sales are made to nominees in states that do not have REGISTRATION or PROSPECTUS delivery requirements. The securities are placed with BROKER-DEALERS who use cold-calling techniques to sell the securities at ever-increasing prices to unsuspecting investors. When the inventory of securities is depleted, the broker-dealers permit the artificial market demand to collapse. See also MICROCAP.
A term coined by traders referring to a stock that trades higher on questionable developments and is subsequently sold off for a quick profit.
A spammers' twist on an old-fashioned stock scam. A spammer sends out thousands of e-mails touting a stock. If enough people buy the stock, the price goes up, and then the spammer dumps the stock at a profit.
Less than an accredited investor, a qualified investor only has to have a $250,000 net worth, or make $60,000 a year in income. Generally this is a meaningless term as such investors are still non accredited investors.
this refers to the stock scam of a stock promoting pumping up a stock price and dumping the stock by selling to innocent investors who then see the price of their stock before they have had a chance to sell their stock.
"Pump and dump" (also known as "Stock Dump" and "Hype and Dump Manipulation") is a term used to describe a form of financial fraud that typically involves artificially inflating the price of a stock or other security through untrue or exaggerated promotion (creating artificial demand), in order to sell stock, previously purchased cheaply, at the inflated price. When the promotion stops or flaws in the promotion are exposed, the artificial demand is removed, causing a collapse in the price of the investment, leaving many investors out of pocket.