Pump and dump

Hey, noob question, but what does pumping and dumping a stock mean?

It's just like with women. You pump them then dump them.

fair enough

yeah but you don't tell all your friends how good a fuck the chick you are pumping is and then dump her retarded ass in their laps.

This board is great.

Love to answer these questions that can easily be read on investopedia and wiki :))))

Why is it illegal? If people are stupid enough to believe whatever they're told without researching the company that's their own fault.

Sticky when?

>Why is it illegal? If people are stupid enough to believe whatever they're told without researching the company that's their own fault.

Why is scamming and fraud illegal you utter fucking retard?

Gee i dunno.

How is it different from advertising that your really shitty restaurant has really good food then they go eat there and waste their money?

Be thisfag
>start a basic materials ETF
>loseyourass.jpg
>awwww shit, just add a few zeros to keep the stockholders happy
>rinse and repeat.

Convincing other people that your assets are worth more than you paid for them so their value goes up and you can sell them for profit isn't fraud, it's basic business.

Because puffery and fraud are two entirely different things.

you're a fucking retard

>Deceiving people is basic business
In Russia?

Exactly. Puffing a stock's potential is not fraud.

but it is

That's why it's illegal

>he thinks pump and dumps are illegal

Fraud is when I promise you a service and do not deliver upon compensation.

"You should buy this stock goy, It's going to go to the moon everyone is buying it right now" is not failing to deliver on a promise. It's not illegal to give bad advice.

Pump and dumps are illegal.

>A pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement.

>Fraud is when I promise you a service and do not deliver upon compensation.

There is difference kinds of fraud.

Cause it's fraud.

Arresting 3 people a year for it makes it illegal on paper, but who the fuck gets caught? There are dozens of stocks in a (pre-pump) accumulation, pump, or dump phase at any given time.

use your common sense retard

You could make that justification for credit card fraud or really anything illegal

It's a description of a cycle of investment.
You invest in something low-priced, but with a good volume of it. For example, you buy a bunch of memecoins.
THEN you pump it. Your initial investment drives the price up somewhat, but then you encourage more people to buy, increasing demand and reducing supply, and making the price rise. You tell people they NEED memecoin in their life. That it's the best way to make money ever. You shill it, you spam it, you push it hard. That's pumping it. The more people buy in, the higher it goes.

Then, at some point, you decide that enough is enough. You dump it; you sell your now-inflated stock at a big profit. The price drops right afterwards because you had a lot of it, but you don't care. You're out. You've sold. Then people panic-sell, thinking that the end is night. And it is, because they're panic-selling and driving the price down by forcing supplies up.

Then once it's down, the cycle begins anew.

It's not really a scam, it's just fooling people into thinking you're onto a huge secret other than 'I'm going to make money off your gullibility'.

>You shill it, you spam it, you push it hard.
yeah i seen the threads