What Is Meant by the Term Pump and Dump?
Video Summary: Explaining the pump and dump scheme
Video Transcript:
Pump and dumpers and investments scheme whereby a broker or a brokerage firm buys a particular stock themselves, they then go out onto the market and pump up the stock. They get investors to buy it and just by the nature of supplying demand that increases the value of the stock, as the stock value increases, the broker or the brokerage firm then sells their position, which will decrease the value of the stock. Meaning, those who help pump up the value have it dumped on them, and the value decreases. It typically only happens with small companies and ones that are very thinly traded where they're not traded every second or half second like a Microsoft or a GE might be traded but it's sadly still a very common occurrence that you see in the brokerage industry if you think that you've been involved in a pump and dump scheme, you should call our office so that we can research the stock and research the broker and brokerage firm involved to see whether that's a real possibility.
Client Reviews
★★★★★
"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self-respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
★★★★★
"My experience with Ryan Cook has been very positive. Through every step of the litigation he explained what to expect to happen. When I spoke with him later he reviewed the process. He was very patient, and I never felt rushed. I have already told friends how wonderful he is." L.R.
★★★★★
"I want you to know that I very much appreciate your expertise, hard work, and guidance that led to a satisfactory resolution with Raymond James. From our first meeting, I felt "heard" and that my situation and story were respected. Every subsequent interaction I had with any of you - in person, via email, or by phone - only corroborated that feeling. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. I will be forever grateful." M.L.
★★★★★
"Good positive experience. Guided us through a difficult process and was pleased with the outcome. Everyone I dealt with was exceptional." A.G.
★★★★★
"Good intelligent attorneys who never miss a beat. I set my expectations high, and they delivered above and beyond. Do not miss the opportunity to let SSEK represent you. Top-notch, efficient and effective firm." S.M.