Tag: stock scams

Pound foolish, and penny foolish too

Folks need to understand some key points about pump-and-dump stock scams before they decide to go the get-rich-quick route.

Pump-and-dump stock scams target micro and small cap stocks for a reason – lack of liquidity. These stocks generally trade at very light volumes, hence existing owners cannot sell the stock without causing the price to go down as there are few buyers for the unknown shell company. So, scammers promote the stock through sleazy (and illegal) marketing tactics. You then buy what they are selling. The sellers get liquid, and you get stuck with the stock on the back end.

There are no two ways about it, and trying to day trade a penny stock will get you cleaned out by even the lowest commission broker.

Best advice is to just stay away.

The Bulls are buying SPAM

It is all about the money. And of course, the distribution. We know phishers chase the cold hard cash, so why shouldn’t their slightly less sneaking pure-spam brethren?

You have mortgages, pharma and porn as the norm, but what was once a big deal coming across the fax, is growing again in popularity across the web. Yes, spam-based stock scams are again on the rise.

Could this be a new leading indicator that the stock market is headed north once again?