What is a "pump and dump" scheme?

Let first simply it

In launguage of stock market

Pump- Boosting it artificially

Dump- Throw back down to its original

In stock market it is generally seen in case of penny stocks (Because they are easy to pump and dump) with very weak financials.

Let see it with a perfect example.

Have a look at the chart below

STOCK NAME: Elegant Floriculture

Now look at its profits

Here you can clearly see that the company is making Loses repeatedly. So it is considerable that without profits it's financials would also be weak.

So you can easily understand how this stocks is artificially pumped and after that it dumped sharply.

So this scheme is all about to trap simple retailers who does not have much idea about the market.

Keep aware of these schemes.

Hope you like it