Penny Stocks Case Study
Penny Stocks are the stocks very low priced- usually, under $5.00 per share. They have a very low liquidity, and, at the same time, a unique opportunity for profits for the aggressive enough traders. However, they have much greater risks as well. Purchasing too many shares due to their affordable prices usually is leading to much greater losses even in the cases of minimal price swings for the worse (Investopedia).
The “Wolf of Wall Street” – Jordan Belfort was convicted for manipulating the stock market and creating and facilitating the Pump-and-Dump scam. Using aggressive pitching techniques, he and his “employees” bought cheap unknown stock. Then, they drove up the interest in it. Inexperienced investors would buy the stock, “pumping” its
The “Wolf of Wall Street” – Jordan Belfort was convicted for manipulating the stock market and creating and facilitating the Pump-and-Dump scam. Using aggressive pitching techniques, he and his “employees” bought cheap unknown stock. Then, they drove up the interest in it. Inexperienced investors would buy the stock, “pumping” its