Friday, May 8, 2009

Pitfalls of investing in Penny Stocks

Penny stocks have always been considered speculative and easily manipulated.

By influencing investors with misleading data on a company, fraudulent brokers or companies can hype up the price of a stock, then sell their own shares once the price reaches a certain level. This scam, known as "pump and dump," is practically as old as the stock market.
adrforum

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