Question
What is a "Pump and Dump" scam?
A.
A scheme which pools investors’ money together but only a small percentage of the pool is actually invested
B.
A scheme that attempts to boost the price of a stock through recommendations based on false or misleading statements
C.
A scheme where an investor collects your money for investment but never actually makes a purchase and instead keeps the money for themselves
D.
A scheme that attempts to beat the overall market's return by investing in high-cost index funds
A.
A scheme which pools investors’ money together but only a small percentage of the pool is actually invested
B.
A scheme that attempts to boost the price of a stock through recommendations based on false or misleading statements
C.
A scheme where an investor collects your money for investment but never actually makes a purchase and instead keeps the money for themselves
D.
A scheme that attempts to beat the overall market's return by investing in high-cost index funds
Answers
GPT-4o mini
B. A scheme that attempts to boost the price of a stock through recommendations based on false or misleading statements.
In a "Pump and Dump" scam, fraudsters promote a stock to inflate its price (the "pump") and then sell their shares at the inflated price, profiting from the unsuspecting investors who bought in based on misleading information (the "dump").
In a "Pump and Dump" scam, fraudsters promote a stock to inflate its price (the "pump") and then sell their shares at the inflated price, profiting from the unsuspecting investors who bought in based on misleading information (the "dump").