Investor Protection Guide: Micro-cap Stock Fraud ("Pump and Dump")

{
  "id": "MLC-T-LAW-002763",
  "term": "Investor Protection Guide: Micro-cap Stock Fraud (\"Pump and Dump\")",
  "field": "Law",
  "definition": "Guidance for investors on recognizing and avoiding schemes involving micro-cap stocks, which are shares of very small companies with low market capitalization. A common fraud, known as \"pump and dump,\" involves artificially inflating a stock's price through misleading promotions, then selling off shares at the peak. This guide advises caution with unsolicited stock tips and emphasizes due diligence for such volatile investments.",
  "url": "https://mlchart.com/terminology/law/investor-protection-guide-micro-cap-stock-fraud-pump-and-dump/"
}