Once the fraudsters stop their market manipulation campaigns, the remaining investors are left with unsellable, cheap stock with no demand from new buyers. Watch the presentation or visit us for more information at https://bit.ly/3G0i70B

1. Tackling the Proliferation of
Pump & Dump Schemes
https://www.shieldfc.com/

2. Market manipulation schemes referred to
as ‘pump and dump’ are not new. In fact,
concerns were being raised in the US
Senate as early as the 1930s, but what is
new are some of the ways in which these
fraudulent schemes are now being run.
But before we get into the details, let’s
get back to basics….
Emma Parry

3. Pump and dump’ (also referred to as ‘ramp and
dump’) schemes essentially have two parts.
Firstly, the perpetrators orchestrate a
campaign to inflate (‘pump’) the price of a stock
with false or misleading information.
What is a ‘Pump & Dump’ scheme?

4. How big is the issue?
Pump and dump schemes have proliferated in the
day trading boom we’ve witnessed during the
COVID-19 pandemic. In fact, in September 2020,
the Hong Kong Securities and Futures
Commission (SFC), estimated that 20% of the
market manipulation cases it was investigating
were pump and dump schemes. Warnings have
been issued by everyone ranging from the US
Federal Bureau of Investigation to the UK’s
Financial Conduct Authority.

5. Who do you turn to for
investment advice?
Social media platforms are, of course,
the perfect vehicle for the effective and
targeted dissemination of false and
misleading information urging
followers to buy a certain stock or crypto
asset. They are also, and increasingly,
the venues for people to access insights
and opinions over mainstream media
and other trusted sources.

6. Are perpetrators being prosecuted?
Yes, there are a number of cases
currently in the courts. Here are
details of just two:
In the first case, the perpetrator,
using the alias “Alex DeLarge,” used a
Twitter account to promote certain
stocks and to disseminate false and
misleading information to encourage
his over 70,000 followers to buy
certain stocks.

7. info@shieldfc.com
97235685587
https://www.shieldfc.com/
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8. Thank
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