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Pump and dump

• Refers to actions by brokers or market makers to attract new buyers. Here, the brokers create the illusion of high trading volume by inflating or pumping up the market for the security. This engineers a brief period of inflated prices. These activities may prompt investors to purchase the targeted securities only to have the broker dump many shares on the market place at the momentarily higher prices. This triggers a rapid decline in values and impacts the recent investors.

 
 Embedded terms in definition
 Broker
Market maker
Market
Prices
Purchase
Securities
Security
Shares
Trading
Volume

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