There are some groups which do this pump and dump in legal way. The sop is that they will buy a shell company at a very low price. Then they will increase their shareholding in it by way of preferential shares. Then they will tell a story related to the current hot industry. The business may or may not be genuine. Some financial improvement in sales and profit will happen. When the retail is convinced regarding the story and the price has been increased to astronomical levels, the promoter will dump significant shares in market. Then they will buy another shell company and repeat the cycle.
Example
Wardwizard innovation > Wardwizard food
Praveg > Jhaveri Credits & Capital Ltd
| Subscribe To Our Free Newsletter |
