Pledge Securities List

Disclaimer

A common scam, the pump and dump scam, happens when a scammer artificially inflates the price of a stock by hyping it up and then selling its shares at the inflated price. Investors who buy at that higher price end up with worthless stock. Another version of this can be called the short and distort scam, where false information is spread to depress the price of a stock leading to short selling.

Another form of fraud is the reverse merger deception. Here, companies merge with shell corporations to appear real without the scrutiny of a traditional IPO. There have also been scam reports of mining ventures and offshore rackets, making the field complex for investors. A common scam, the pump and dump scam, happens when a scammer artificially inflates the price of a stock by hyping it up and then selling its shares at the inflated price. Investors who buy at that higher price end up with worthless stock. Another version of this can be called the short and distort scam, where false information is spread to depress the price of a stock leading to short selling.

Another form of fraud is the reverse merger deception. Here, companies merge with shell corporations to appear real without the scrutiny of a traditional IPO. There have also been scam reports of mining ventures and offshore rackets, making the field complex for investors.