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Glossary > P > "Pump and Dump" Definition

Pump and Dump

A highly illegal practice occurring mainly on the Internet. A small group of informed people buy a stock before they recommend it to thousands of investors. The result is a quick spike in the price followed by an equally quick downfall. The people who have bought the stock early sell off when the price peaks.

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Pump and Dump - A highly illegal practice occurring mainly on the Internet. A small group of informed people buy a stock before they recommend it to thousands of investors. The result is a quick spike in the price followed by an equally quick downfall. The people who have bought the stock early sell off when the price peaks.

Pump and Dump : a highly illegal practice occurring mainly on the internet. a small group of informed people buy a stock before they recommend it to thousands of investors. the result is a quick spike in the price followed by an equally quick downfall. the people who have bought the stock early sell off when the price peaks.