Pump-and-dump Scheme (Noun)
Meaning
An illegal scheme for making money by manipulating stock prices; the schemer persuades other people to buy the stock and then sells it himself as soon as the price of the stock rises.
Classification
Nouns denoting cognitive processes and contents.
Examples
- The pump-and-dump scheme was uncovered when investigators discovered a series of suspicious trades and emails between the conspirators.
- He was accused of running a pump-and-dump scheme, artificially inflating the stock price of a small tech company before selling his shares at a huge profit.
- The pump-and-dump scheme was cleverly disguised as a legitimate investment opportunity, convincing many unsuspecting investors to buy in.
- Regulators warned investors to be wary of the pump-and-dump scheme, which had already resulted in significant losses for several people.
- The scammer's pump-and-dump scheme was ultimately brought down by a whistleblower who came forward with evidence of the scheme's existence.