Do You Know About "Pump And Dump" Schemes? | Attorney General - State of Colorado

Do You Know About "Pump And Dump" Schemes?

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"Pump and dump" schemes are often promoted on websites and social media.  There are two parts: First, promoters pump up the price of a stock with false or misleading statements about the company, often claiming to have “insider information.”  Next, when the stock price takes off, the promoters sell their own holdings of the stock, dumping shares into the market.  After these shares are dumped, the price falls rapidly, and investors lose their money.

If you believe you have been victimized by a pump and dump scheme or wish to report suspicious activity, please file a report here.