Caution, potential attempts to entice buying of Paychest shares ...
Posters may hear lots of what sounds like exciting things in store for Paychest but you would be best served to do your own due diligence and verify any message board statements prior to sinking your hard earned money into Paychest. For example, you may see things posted such as "Lots of news coming for Paychest that is ready to hit the news wires as soon as the DTC chill is lifted. Grab all the shares as soon as you can so you aren't left behind."
Be aware, that per wikipedia, these kind of statements fit right into the pump and dump playbook. These statements fit the definitions of "Often the stock promoter will claim to have "inside" information about impending news." and the "Messages in chat rooms and email spam urge readers to buy the stock quickly.".
--------------
Pump and Dump Scenarios Explained:
Pump and dump schemes tend to take place either on the Internet including e-mail spam campaigns or through telemarketing from "boiler room" brokerage houses (for example, see Boiler Room). Often the stock promoter will claim to have "inside" information about impending news. Newsletters that purport to offer unbiased recommendations then tout the company as a "hot" stock. Messages in chat rooms and email spam urge readers to buy the stock quickly.[1]
Unwitting investors then purchase the stock, creating high demand and raising the price. This seemingly "real" rise in prices can entice more people to believe the hype and to buy shares as well. When the people behind the scheme sell their shares and stop promoting the stock, the price plummets, and other investors are left holding stock that is worth significantly less than what they paid for it.
Fraudsters frequently use this ploy with small, thinly traded companies known as "penny stocks," generally traded over-the-counter (in the United States, this would mean markets such as the OTC Bulletin Board or the Pink Sheets), rather than markets such as the New York Stock Exchange or NASDAQ because it is easier to manipulate a stock when there is little or no independent information available about the company.[2] The same principle applies in the United Kingdom, where target companies are typically small companies on the AIM or OFEX.
---------------
en.wikipedia.org |
