A "pump and dump" scheme involves buying shares of stock, hyping that stock via the Internet and then quickly selling the shares at a profit.

Question

Quizplus · Accepted Answer

A "pump and dump" scheme involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price typically falls and investors lose their money.

A "Pump and Dump" Scheme Involves Buying Shares of Stock