Pump-and-Dump

If you are like me, you are receiving several emails each week that highly recommends some unknown penny-stock that is about to take-off and deliver unprecedented returns.  If you’re like me, you suspected that something isn’t right with these emails and wondered what is behind some or all of these recommendations.  The link below officially clears it up.  The scheme is called “Pump-and-Dump”.  The senders of many or most those emails are hoping that many will respond and invest quickly.  Then, as soon as the promoters see the price rise for that penny stock, they’ll sell their position and leave those who hold on with losses.  McAfee is reporting a sharp rise in the number of these emails.  The other thing I want to know, is how did they get my email?http://www.dreamstime.com/stock-photo-email-box-image29168070

 

http://www.advisorone.com/2013/06/12/sec-finra-warn-of-email-pump-and-dump-stock-scheme?utm_source=compliance61413&utm_medium=enewsletter&utm_campaign=compliance