Answers.com > Wiki Answers > Categories > Business & Finance > Investing and Financial Markets > Stock Market > What are the signs of a stock market scam?

What are the signs of a stock market scam?

In: Stock Market [Edit categories]

Answer:

The pump-and-dump is a common stock scam where a stock will be promoted and pumped up so many people will buy it and raise the price. Then the original owners will dump their stocks and drop the price again. In other words, if something looks too good to be true, it is.

First answer by Answers Publishing Network. Last edit by Answers Publishing Network. Contributor trust: 101 [recommend contributor ]. Question popularity: 3 [recommend question].

[report abuse]

Can you answer these Stock Market questions?

	When does play n trade close?	Answer it!
	What is it called when an investor borrows money and invests the borrowed funds along with his or her own funds in securities?	Answer it!
	Was the launch of face book on the stock market a huge success?	Answer it!
	How is rights issue recorded?	Answer it!
	What percentage of market share does Princeton Review have?	Answer it!

Relevant answers:

What are the punishments for stock market scams?
Punishments for stock market scams are going to depend on what specific crimes are committed, as well as a criminal history of the person who committed the crime.
What are some of the current stock market scams?
The most common scam at the moment is called "Pump and Dump." It is easy to do, and is often the quickest. It involves outsiders and those within the company, and the spreading of false news. Another...
What is a definition of a stock in the stock market?
A stock is a certificate that indicates or is a proof of your ownership in a company. When a company needs capital, it issues shares or stocks that investors can buy for a stake in the company. When...
What is the worst stock in the stock market?
bbda
Who insures your stocks in the stock market?
No One, not your broker, not the SIPC, not the FDIC. The only insurance you have is if your broker goes out of business, the stocks and cash you have in your account is insured. If you would like to...