Common Stock Market Scams

[MadMax]

If you want to invest in stock market, you need to know about stock market scams. Some sommon stock market scams include:

1. Pump and Dump: Fraudsters hype a stock to inflate its price, then sell off their shares at the peak. Example: In 1999, the "Silk Road Equity" scheme manipulated micro-cap stocks.
2. Ponzi Schemes: Paying returns to earlier investors using new investors' funds. Example: Bernie Madoff's $65 billion scam.
3. Insider Trading: Trading based on non-public information. Example: Martha Stewart's 2001 ImClone trading.
4. Boiler Room Scams: High-pressure sales tactics to sell worthless stocks. Example: The 2013 "Wolf of Wall Street" case.

These scams prey on investor greed and ignorance.
By the way, have you been scammed?

 

[Heatman]

Pump and Dump scam is one of most common scam that still thrives in the Stock market. If you don't know exactly what you're doing in the Stock market, you will always fall victim to pump and dump scam. I haven't been into Stock market or trading, it's why I've avoided it.