Market structure & regulation
What is Pump and dump?
Hinglish mein padhein: Pump and dump kya hota hai?
A pump and dump is a scam in which promoters of a stock hype it with misleading tips to push the price up, then sell to the buyers they attracted.
It usually targets small, illiquid stocks and spreads through messaging groups, social media and fake 'finfluencer' calls.
Red flags: guaranteed returns, urgency, and tips from people who are not SEBI-registered.
Related terms
- SEBI-registered investment adviserIn India, only SEBI-registered investment advisers (RIAs) and research analysts (RAs) may give personalised stock advice or recommendations for a fee.
- Insider tradingInsider trading is dealing in a company's shares using unpublished price-sensitive information. It is illegal under SEBI regulations.
- LiquidityLiquidity is how easily you can buy or sell a stock quickly without moving its price much.