ushdadude
Level 2 Member
This may be completely skewed thinking so let me know.
I'm reading about the dangers of falling for a pump and dump scheme. Basically someone hawks a specific stock to artificially inflate the price and then sells his shares. They say the average inflated price only lasts for about two days and then comes crashing back down. The people left holding the shares end up losing out. So....What if you here about a pump and dump and cash out a day after buying in; or if you are at the peek, selling short? Does this make any sense at all? Any legal ramifications?
I'm reading about the dangers of falling for a pump and dump scheme. Basically someone hawks a specific stock to artificially inflate the price and then sells his shares. They say the average inflated price only lasts for about two days and then comes crashing back down. The people left holding the shares end up losing out. So....What if you here about a pump and dump and cash out a day after buying in; or if you are at the peek, selling short? Does this make any sense at all? Any legal ramifications?