Pump and dump schemes

A pump and dump scheme is a fraudulent investment tactic where promoters artificially inflate the price of a low-value asset, typically a stock, through misleading positive claims or hype. They "pump" up interest and demand, driving the price higher. Once the price is sufficiently elevated, the promoters sell off their holdings—this is the "dump." As a result, prices often plummet, leaving unsuspecting investors with significant losses while the promoters make a profit. Such schemes are illegal and harm market integrity by deceiving investors and manipulating stock prices.