Pump and dump scheme

A pump and dump scheme is a type of investment fraud, often seen in stocks. It involves artificially inflating the price of a low-value asset (the "pump") through misleading or deceptive statements to attract unsuspecting investors. Once the price is driven up, the fraudsters sell their holdings at the inflated price (the "dump"), leading to significant losses for the new investors as the asset's value plummets. This scheme is illegal and is considered market manipulation, harming both individual investors and the integrity of financial markets.