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Investor Alert: Fraudulent Stock Promotions

07/29/2015
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about fraudsters who promote a stock to drive up the stock price and then sell their own shares at the inflated price, making money at investors’ expense.

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about fraudsters who promote a stock to drive up the stock price and then sell their own shares at the inflated price, making money at investors’ expense.

Fraudsters who conduct stock promotions are often paid promoters or company insiders who stand to gain by selling their shares after creating a buying frenzy and pumping up the stock price.  The promoters or insiders make profits for themselves while creating losses for unsuspecting investors.  

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