Pump & Dump

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Pump and Dump is a phrase that often refers to one of the traditional business practices used to manipulate markets and bilk investors.

  1. Fraudsters buy shares in the target company, usually one that's little known.
  2. Fraudsters put out false information pretending the target company is worth more than it is.
  3. The share price goes up if investors believe the lies about the target company.
  4. Fraudsters sell their shares in the target company for more than the shares are really worth. Then the share price goes down.
  5. Ordinary investors are left with something worth less than what they paid. [1][2][3]


  1. "Pump-and-Dumps" and Market Manipulations
  2. Pump and dump RationalWiki on Pump and dump
  3. Pump and Dump

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