Risk & Fraud 10 cards 5 min

How to Spot and Avoid Pump-and-Dump Schemes in Penny Stocks

Learn to identify 10 warning signs of penny stock pump-and-dump schemes. Red flags, volume anomalies, social media manipulation, insider selling patterns, SEC enforcement — protect your capital from the #1 penny stock scam.

Intent:
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Interactive Tools & Resources

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Pump and Dump Red Flag Checklist

Warning
Check each red flag before buying any penny stock. 0/8
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Pump and Dump Lifecycle

Timeline
Understand the four phases of a typical pump and dump scheme.
PhaseDurationVolumePriceWho ProfitsWho Loses
AccumulationWeeksLowFlat/decliningPromoters buy cheapNobody yet
Pump1-5 days10-50x avg+50-300%Early promotersNobody yet
Distribution1-3 daysVery highNear peakPromoters sellLate buyers enter
Dump1-10 daysDeclining-50-90%NobodyAll retail buyers

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