Definitions for "PUMP AND DUMP"
Keywords:  dump, scam, collapse, microcap, hype
A scheme to make prearranged "sales" of SECURITIES under Rule 504 of Regulation D. The sales are made to nominees in states that do not have REGISTRATION or PROSPECTUS delivery requirements. The securities are placed with BROKER-DEALERS who use cold-calling techniques to sell the securities at ever-increasing prices to unsuspecting investors. When the inventory of securities is depleted, the broker-dealers permit the artificial market demand to collapse. See also MICROCAP.
A term coined by traders referring to a stock that trades higher on questionable developments and is subsequently sold off for a quick profit.
A spammers' twist on an old-fashioned stock scam. A spammer sends out thousands of e-mails touting a stock. If enough people buy the stock, the price goes up, and then the spammer dumps the stock at a profit.