Taylor has 100 shares of a new corporation. Because the business is still in its infancy, stock can be purchased relatively inexpensively. He wants to make a profit without sticking around for the long haul. He begins spreading rumors that the corporation will soon be purchased by Apple, which is in no way true. The stock soars and he quickly sells his stock, making a tremendous profit. Taylor's actions are an example of what?

Question

Quizplus · Accepted Answer

Taylor's actions are an example of a "pump and dump" scheme, where false information is spread to inflate the stock price, allowing the individual to sell their shares at a higher price and make a profit.

Taylor Has 100 Shares of a New Corporation