In this video, we explain all about Pump and Dump Schemes, how it works, its different stages and tips to avoid them. What is a Pump and Dump Scheme? It is a scam where the stock price increases by creating fault hype and later selling it off. Then, after a point, both the hype and the price of these shares topple down, resulting in heavy loss for the investor. Different stages in the pump and dump scheme? – Stage 1: Spreading fake news, pamphlets, and celebrity endorsements. – Stage 2: Pooling investment due to the fake news and selling the stocks when the price is high. – Stage 3: Stocks fail due to non-performance, and the hypes wear off.. Causing loss to the investors. Tips to avoid Pump and Dump Tip 1: Be extremely cautious when you receive any investment offers. Tip 2: Analyze the pitfalls and red flags. Tip …
