Published on 2 Dec 2022 on Insider Monkey via Yahoo Finance
10 Pump and Dump Stocks Hedge Funds Like
In this article, we discuss the 10 pump and dump stocks hedge funds like. If you want to read about some more pump and dump stocks, go directly to 5 Pump and Dump Stocks Hedge Funds Like.
The influx of retail investors on the stock market in recent months and the rise of social media speculation around meme stocks has given strong momentum to pump and dump schemes. This is a phenomenon not limited to just the United States but spread across the world. On August 11, the Singapore police warned traders of “a resurgence in pump and dump schemes” after seven people lost more than $1 million through investments in a publicly-traded equity. In the US, legendary investors like Mario Gabelli have raised similar warnings.
To understand pump and dump schemes, a small introduction to penny stocks is also important. Penny stocks are more popular than ever, enticing investors with low entry costs and the possibility of large financial gains. Stories of shares increasing in value by more than 4,000% in a matter of months add to their allure, and new trading technology makes it easier than ever to enter the market. However, while penny stocks can be profitable, they also carry a high level of risk, which must be balanced with value investments.