Common Stock Market Scams

[MadMax]

If you want to invest in stock market, you need to know about stock market scams. Some sommon stock market scams include:

1. Pump and Dump: Fraudsters hype a stock to inflate its price, then sell off their shares at the peak. Example: In 1999, the "Silk Road Equity" scheme manipulated micro-cap stocks.
   
2. Ponzi Schemes: Paying returns to earlier investors using new investors' funds. Example: Bernie Madoff's $65 billion scam.
   
3. Insider Trading: Trading based on non-public information. Example: Martha Stewart's 2001 ImClone trading.
   
4. Boiler Room Scams: High-pressure sales tactics to sell worthless stocks. Example: The 2013 "Wolf of Wall Street" case.
   

These scams prey on investor greed and ignorance.
By the way, have you been scammed?