Penny stocks can be riskier than any other stock. Here's why they're so dangerous.

  • 📰 NBCPhiladelphia
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Penny stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement action.

"It all kind of comes together as the perfect storm of opportunity for criminal enterprises," Greg Ruppert, head of FINRA's member supervision organization, told CNBC."Certain statements or claims could be made that are not readily verifiable or easily investigated or tracked.

Before Zamansky started representing investors who were abused by Wall Street firms, he was an attorney for Stratton Oakmont. That's where he learned about the business of penny stocks. Innocent investors bought into Belfort's sales pitch, which artificially pumped up stock valuations. Then, the firm would sell its shares. That's known as a"pump and dump" scheme.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 569. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘Unique’ Aramco IPO changes the dynamics of Saudi Arabia’s economy, stock market CEO saysThe world's largest IPO will radically transform the way in which Saudi Arabia's economy operates, according to the chief executive of the Saudi Stock Exchange.
Source: CNBC - 🏆 12. / 72 Read more »