"If you receive an unsolicited stock promotion, be cautious. Whoever is promoting the stock may stand to profit at your expense from pumping up the stock price and then selling shares. Fraudsters often use emerging technologies or industries - including Initial Coin Offerings (ICOs) and digital assets - to entice investors as part of a fraudulent or manipulative scheme. For example, they may publicly announce a development that is intended to affect a company's stock price. Or they may promote a company that claims to be developing products or services relating to the latest news events or trends.
Publicly-available information about microcap stocks (low-priced stocks issued by the smallest of companies), including penny stocks (the very lowest priced stocks), often is scarce. This makes it easier for fraudsters to spread false information. In addition, it is often easier for fraudsters to manipulate the price of microcap stocks because microcap stocks historically have been less liquid than the stock of larger companies and often do not trade on a national securities exchange",
What are some warning signs of microcap fraud? Read more:
https://www.investor.gov/protect-your-investments/fraud/types-fraud/microcap-fraud
Publicly-available information about microcap stocks (low-priced stocks issued by the smallest of companies), including penny stocks (the very lowest priced stocks), often is scarce. This makes it easier for fraudsters to spread false information. In addition, it is often easier for fraudsters to manipulate the price of microcap stocks because microcap stocks historically have been less liquid than the stock of larger companies and often do not trade on a national securities exchange",
What are some warning signs of microcap fraud? Read more:
https://www.investor.gov/protect-your-investments/fraud/types-fraud/microcap-fraud
