But as in almost every case of uncontrolled excess, greed got the better of Belfort. With the Feds tracking his every move, he was always on the run, covering corners while simultaneously cutting them. For a while, the notorious pump-and-dumper had the upper hand but hubris mixed with cocaine binges tends to distort a man's cognitive abilities, even that of the great Jordan Belfort. It wasn't long before his world came crashing down.
Penny stocks are the yin and yang of the investment world : it is either full-on or full-off. They can be an incredible asset catapulting you to unprecedented success or they could shatter your dreams in a nanosecond. Their potency can make a man feel like a king one day and a lowly pauper the next. It's one of the most dangerous and altogether fascinating aspects in finance, a sector that simultaneously represents true market freedom and its stark antithesis. Understanding this concept is the first step in harnessing its incredible potential but one can never be too careful.
In that spirit, here are some signs to look for in order to avoid being the victim of a pump-and-dump!
- If an online search for the company does not yield the company's website amongst the first few listings, let alone, the first page of the search engine, you might be pumped-and-dumped.
- If the company's website looks like it was put together with a Geocities template, you might be pumped-and-dumped.
- If the company's financials haven't been updated since 1998, you might be pumped-and-dumped.
- If you have to inquire where the financials even are, you might be pumped-and-dumped.
- If you placed an inquiry and you don't get an answer, you might be pumped and dumped.