Penny Stock News Scam
Penny stocks are low value stocks or small-cap stocks having great potential to fetch high profits. Penny stocks are highly volatile and rather inactive stocks and they have a highly unpredictable and liquid nature. The stocks sometimes fetch the marvelous rewards (they have the great ability to surge incredibly from 25 cents to $20.00), but sometimes they quickly become worthless. Another risky thing about penny stocks is that they are highly vulnerable to frauds and scams. Lets check out some of the penny stock news scams and how they play out. The "Pump and Dump" is the most common penny stock scam today. In the scam, a collaboration of speculators accumulate a large number of shares in a penny stock, and then they spread rumors, news, or release financial reports about the stock. These rumors cause unknowing traders to inflate the value of the stock and, after the original speculators sell at a high value, the stock eventually crashes and becomes worthless.
The "Poop and Scoop" is another penny stock scam where the manipulators spread highly negative rumors about a stock in order to make its prices drop. They buy the stock at the lowest possible dip, and sometimes later launch positive rumors that make the stock prices surge, and they sell the stock when the prices go up.
Front Running, insider trading, and circular trading are other illegal practices that anyone who gets involved in this business needs to look out for. Several regulatory agencies such as the SEC (Securities and Exchange Commission) have started acting as powerful lines of defense against these stock frauds by strictly monitoring the stock chat boards and forums. To learn more about a simple system I use to make passive income without the complex financial formulas or risk involved in most investment vehicles - Click Here For Details Warmly 
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