OK - so we have seen how the Pump and Dump scam works: a huckster will take a stock (or like investment), advertise it to all potential buyers as the "one to buy" or "you must buy NOW!" This creates a false sense of confidence about the stock and creates unwarranted attention. This attention, of course, creates an incentive to purchase the stock in large quantities or encourages many people to purchase the stock.
In any case, the result is the same: the price of the stock goes up because of the demand. The price becomes artificially inflated. A viscous circle develops - the more the word gets out, the more the stock is in demand which of course leads to the price of the stock go up because of the demand..
Then, after the stock reaches its maximum inflated value (or what is thought to be the maximum value) and the hucksters then sell the stock at the artificially inflated value. In other words, they get out while the going is good. Once the people at the top sell the stock, it creates a spiral effect where others sell the stock as well, but at a much lower value.
In any case, the result is the same: the price of the stock goes up because of the demand. The price becomes artificially inflated. A viscous circle develops - the more the word gets out, the more the stock is in demand which of course leads to the price of the stock go up because of the demand..
Then, after the stock reaches its maximum inflated value (or what is thought to be the maximum value) and the hucksters then sell the stock at the artificially inflated value. In other words, they get out while the going is good. Once the people at the top sell the stock, it creates a spiral effect where others sell the stock as well, but at a much lower value.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
----------à>>>>>>>>>>>>>>>gene
tausk
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