Business and Personal Finance Dictionary

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• PUMP AND DUMP
  
  Refers to actions by brokers or market makers to attract new buyers. Here, the brokers create the illusion of high trading volume by inflating or pumping up the market for the security. This engineers a brief period of inflated prices. These activities may prompt investors to purchase the targeted securities only to have the broker dump many shares on the market place at the momentarily higher prices. This triggers a rapid decline in values and impacts the recent investors.
  
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