FINRA, SEC Warn Investors: Don’t Trade on Pump-And-Dump Stock Emails
The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) today issued an Investor Alert called Inbox Alert—Don’t Trade on Pump-And-Dump Stock Emails warning investors of a sharp increase in email-linked to “pump-and-dump” stock schemes. “Investors should always be wary of unsolicited investment offers in the form of an e-mail from a stranger,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. Pump-and-dump promoters frequently claim to have “inside” information about an impending development. Others may say they use an “infallible” system that uses a combination of economic and stock market data to pick stocks. These scams are the “inbox” equivalent of a boiler room sales operation, hounding investors with potentially false information about a company.