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Stock impact report

New York stock traders sound alarm on 330% increase in pump-and-dump schemes [CBS News]

Masonglory Limited - Ordinary Shares (MSGY) 
Company Research Source: CBS News
It's a type of stock market scheme that's emptying bank accounts all over the country. Two traders from New York told reporter Tim McNicholas it cost them tens of thousands of dollars. How pump-and-dump schemes work From the Nasdaq to the New York Stock Exchange, the FBI says pump-and-dump complaints have jumped 330% over the last year. Scammers start out by buying shares of a cheap stock but then convince others to buy big, pumping up the stock's value so the scammers can then sell their shares for huge profits. D.J. Hennes is a managing director with the accounting firm KPMG. "More people are invested in the stock market than ever," Hennes said. "Sort of [like] day trading with Robinhood. It's more popular to be involved in these things in the short term, and then social media has allowed these messages to go out more quickly to more people." Securities and Exchange Commission Chairman Paul Atkins recently testified before the U.S. Senate Committee on Banking, Housing Show less Read more
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