SEC and FINRA Warn Investors about Pump-and-Dump Stock Spam

The SEC and FINRA issued a warning to investors regarding a sharp increase in e-mail linked to "pump-and-dump" stock schemes designed to trick unsuspecting investors. Pump-and-dump promoters frequently claim to have "inside" information about an impending development, but once the stock price is "pumped" up by the buying frenzy they create through mass e-mail pushes, they "dump" their shares by selling them, and investors are left with a near worthless stock. Investors should always be wary of unsolicited investment offers in the form of an e-mail from a stranger.

See: Investor Alert; Press Release.