What is a pump and a landfill?
pump and landfill is an illegal investment system used to increase the value of shares. Con Artists buy a large number of low -cost shares, artificially inflate value with false demands, and then sell shares for huge profits. When large stock blocks are sold, shares become virtually worthless. Investors who were not aware of this scheme usually lose money. Since 2009, the Internet is commonly used to inflate the price of shares. Pump and landfills prices are inflated with advertising of false requirements in media issues, chat rooms and signboards. Schemers talks about the new product or service offered by the company and tell investors to buy now or lose big profits.
When investors start buying stocks, the price rises. At this point, people who committed fraud sell their shares for huge profits. After the shares is issued, the price will be forfeited. Anyone is not in the fraud is left to hold a stock that is virtually worthless. Is easyI manipulate than large companies. Such shares usually trade over the counter (OTC) instead of a large stock exchange. There is less information about them. Many of them do not have to submit the financial statements with the Securities and Exchange Commission (SEC).
Investors can avoid pumps and dumps by completing their own research before purchasing any stock. Potential buyers may also consider a source of stock information. If a foreigner sends information about the investor about stocks with strong and urgent recommendations to buy, it can be a fraud of pumps and landfills.
sales records are also a good indication of pumps and landfills. New, innovative products and services should have a lot of sales to support them. In fact, WityTo sales have a small foundation. Companies that offer a new product will have many times a good history of sales with other products.
InvestoThey can also check SEC records and examine specific shares. Most legitimate companies submit financial statements with SEC. If these records are not available, the investor can look for information from another third party to back up any company's claims. If the information cannot be verified by any third party, this could indicate that the supply is part of the pump and landfill scheme.