Pump and Dump Frauds in Penny Stocks

Penny stocks are great investments for the well informed investors. You might be associated with the penny stock newsletters and they might influence you to buy some stocks. There are many websites claiming double or triple ROI within no time. This might appear like an opportunity for you, but it is not always true. It might be a way to make you fooled to earn high within no time. It develops a kind of greed in your mind and you start feeling as if it is the only way to grab a lot of money with least investment.

There are many stories floated online illustrating that $0.1 per share value increased to $100 with a thousand percent of return. These are nice stories and some of them might be true. Penny stocks don’t have a liquid market and most of them have low trading volume. The liquidity dries up giving dry and high investments at wrong time. Penny stocks are priced under $5 per share and are not traded in major stock listings. Penny stock trading is non profitable for most of the cases because people get trapped into the advertisements created for pump and dump schemes.click here to earn back your lost cash with penny stocks

Pump and Dump Frauds in Penny Stocks

There are many people who get into the marketing materials floated by the fraud people and get losses. You can imagine how terrible it would be to see all your money getting ruined. Some fake companies float a lot of positivity in the market and advertise in forums, newsletters and many other sources. They begin with too low value per stock and tempt people to purchase them. The stock prices are increased (pumped) immediately and the clever brokers sell them at high rates. After increasing the rates and selling all the stocks, the stock is dumped and the innocent investors have to bear the losses. Investors have to keep in mind that these things occur in penny stock market and should be carefully tackled to avoid losses.