how does a penny stock pump and dump work?
Question by Tracy: how does a penny stock pump and dump work?
you mean to tell me, enough suckers buy the stock from a newsletter posting to throw the price up?
or is it buyer support..the promoter or pumper buying alot of shares in a short time frame to attract momentum traders?
Best answer:
Answer by Scarface
To answer your question- Both.
Buying drives the price up.
Those pink sheet stocks have little to no volume in the marketplace, so one alone can generate enough volume to drive the share price up.
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What Is A Penny Stock Pump & Dump? By Trader Timothy Sykes
www.timothysykes.com http Pump & dumps are when stock promoters get paid in cash and/or stock to send emails/faxes to sucker people to buy a piece of crap company….and the promoters usually sell their stock directly into the suckers buying…this is all disclaimed ahead of time, but very few people read disclaimers and even fewer make it out of pump and dumps without massive losses. For the past decade, I’ve made millions short selling into the dumps because these are truly the worst publicly traded companies in the world, 99% of which will be out of business within months/years. See more at www.timalerts.com
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Penny stocks – The anatomy of a pump and dump
www.hotstockmarket.com – The classic chart of a pump and dump in the penny stock world. Watch and learn to identify this chart, you will save thousands!
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