Stock Market Scams

Stock market scams involve deceptive practices that trick investors into losing money. Common types include "pump and dump," where scammers artificially inflate a stock's price to sell it at a profit, leaving others with losses. Ponzi schemes promise high returns but rely on new investors’ money to pay earlier ones. Insider trading involves trading based on non-public information, which is illegal. Other scams may involve fake investment opportunities or shady brokers. Awareness and due diligence are crucial to avoid falling victim to these fraudulent schemes. Always verify information and consult reputable sources before investing.