Online Stock Trading - Pump and Dump Scams Caught on VideoWhat is a pump and dump scam ? It means someone buys a stock then artificially pumps up the price by false promises and analyses and by encouraging traders and investors to buy the stock, knowing full well that the stock is worth a lot less than they are claiming. Once they have pumped up the price they quietly sell out and leave all the investors who they persuaded to buy, holding the can.
It is illegal but that doesn't stop big names getting involved in the practice. This video from stock trading master is most illuminating. Stock trading master is an interesting guy and tells it as he sees it and apparently makes a living trading stocks and shares !
See also the video on how stocks are manipulated by guys with deep pockets - stock charting for beginners