PENNY STOCKS EXPOSED

The world of penny stocks is truly a risky business that frequently involves fraudulent activities. This website is designed to aid investors in spotting fraudulent trends and learning about common types of penny stock fraud. This website examines recent convictions and SEC sanctions, to aid penny stock investors in recognizing potential signs of a fraudulent enterprise. The most common penny stock fraud is referred to as the "PUMP AND DUMP". To perpetrate this scam, a group of speculators accumulates a large number of shares in a certain penny stock. This is followed by an onslaught of press releases, containing rosy outlook of the company and mind-blowing predictions of multimillion dollar gains. These press releases and media announcements are commonly referred to as "FINANCIAL PORN". The intent is to create the perception that the company's stock is about to skyrocket and investors would be getting a bargain, as long as they buy the stock immediately. The news is almost always false, peppered with enough verifiable information to create the misleading appearance of veracity. Once investors start buying and trading, the price of the stock jumps and the original group of fraudsters exit with large profits, dumping their shares of stock. Promotional press releases stop and the price of the stock sharply falls, which leaves penny stock investors holding the bag.