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Shares/stocks dumping - Why micro investors should be careful.

Kayzzy3

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Shares or stock dumping is the act of selling off large part of shares of a company at low market or whatever market price, major due to speculations or fear of one thing or the óther.

This is usually brings down the price of that company's shares, it's mostly done by major stake holders of companies, just like a popular American dumped share of America airline.

The bad new is that those who invested at high price will loose money. The good news however is that new investors can buy the shares/stock at low price.

As a non major investor, this is something to be weary of.

Gain knowledge of the company you wish to invest in, check their antecedence and peruse their official future outlook before you invest.

Thanks.
 
Shares or stock dumping is the act of selling off large part of shares of a company at low market or whatever market price, major due to speculations or fear of one thing or the óther.

This is usually brings down the price of that company's shares, it's mostly done by major stake holders of companies, just like a popular American dumped share of America airline.

The bad new is that those who invested at high price will loose money. The good news however is that new investors can buy the shares/stock at low price.

As a non major investor, this is something to be weary of.

Gain knowledge of the company you wish to invest in, check their antecedence and peruse their official future outlook before you invest.

Thanks.
This is one major problem investors with lower capital suffer from in the share investment because dumping can bring you a massive loss when you are just a micro investor.
 
This is one major problem investors with lower capital suffer from in the share investment because dumping can bring you a massive loss when you are just a micro investor.
Yes! Sometimes it a planned work or strategy to bring in new investors by lowering share price.

Most major share holders dump shares when the have made their returns on investment that company and wants to move to another company.

Micro investors must be careful.
 
My nephew in the stock market said that it is good to buy stocks at low prices if you are a small time investor which means you don't get injured if the company closes. Buying stocks is a gamble with your money so it is better to gamble a little with the hope of hitting it big instead of putting big money on low-risk stocks but low in earnings. It depends on your decision which stocks to buy. Just take note that dumped stocks may be pointing towards the closure of the company.
 
Pump-and-dump is an illegal scheme to boost a stock's price based on false, misleading or greatly exaggerated statements. Pump-and-dump schemes usually target micro- and small-cap stocks. People found guilty of running pump-and-dump schemes are subject to heavy fines.
 
Yes you are right.
Pump and dump is misleadingly expanding the stock cost of stocks with exceptionally faulty possibilities. The con artists siphon up the cost and once the selling volume arrived at minimum amount without any purchasers they sell al the offers (dump them). This plan can be executed by anybody with admittance to a web based exchanging account and the capacity to persuade different speculators to purchase a stock that is apparently prepared to take off.
 
I agree dumping of shares can be due to a number of reason, the investor already has inside information about an impending doom waiting to befall the company, so he/she dumps all the shares, may take a small loss but not as significant as if the shares plummet due to a scandal or lawsuits.
 
I think the fear should come from those who dump trading sites in other to swindle peoples money, nobody can dump his or her shares, cos they bought it with there money, it's the site owners that can do that just to still there money it's too bad, I only blame those who hoast websites, they don't care to know what the site they hosting is all about they are just after their money.
 
. The con artists siphon up the cost and once the selling volume arrived at minimum amount without any purchasers they sell al the offers (dump them). This plan can be executed by anybody with admittance to a web based exchanging account
 
Shares or stock dumping is the act of selling off large part of shares of a company at low market or whatever market price, major due to speculations or fear of one thing or the óther.

This is usually brings down the price of that company's shares, it's mostly done by major stake holders of companies, just like a popular American dumped share of America airline.

The bad new is that those who invested at high price will loose money. The good news however is that new investors can buy the shares/stock at low price.

As a non major investor, this is something to be weary of.

Gain knowledge of the company you wish to invest in, check their antecedence and peruse their official future outlook before you invest.

Thanks.
Thank you for this information. It is important that investors carry out a background check before investing in a company's shares. Some companies also do not make it public when selling of shares so how can investors know about this?
 
The selling of large amounts of a stock or stocks in general at whatever market prices are in effect. For example, investors might dump stocks upon hearing of an outbreak of fighting in some part of the world.
2. The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs and then sell the product in a foreign market at a significantly lower price covering only variable costs.
 
Shares or stock dumping is the act of selling off large part of shares of a company at low market or whatever market price, major due to speculations or fear of one thing or the óther.

This is usually brings down the price of that company's shares, it's mostly done by major stake holders of companies, just like a popular American dumped share of America airline.

The bad new is that those who invested at high price will loose money. The good news however is that new investors can buy the shares/stock at low price.

As a non major investor, this is something to be weary of.

Gain knowledge of the company you wish to invest in, check their antecedence and peruse their official future outlook before you invest.

Thanks.
Investment in shares or stock, in the real business sense, has never been totally safe but the profits that people get from such investments may not give them the opportunity to think deeply about that. One who is into such business should always anticipate changes
 
Thanks for the informative write up my friend. Generally it's best we study about the stock or share we are purchasing before going ahead to purchase them.
 
This is why I do tell newbie to seek for knowledge before they enter the stock market or before they buy any amount of stock into their portfolio. The market is just too manipulative
 
Well generally every investors have to be careful about volatile market because if they are not really careful they can be at risk of losing their money
. This also happened in cryptocurrency and if you are not careful the risks of getting a serious depreciation in the price of your asset is very common.
 
I thought this phenomenon of dumping only applied to the crpytocurrency market. Now I see another similarity between the two markets.
It's all a pointer that everyone looks out for himself when it comes to money matters.
It's advisable to always do your research before putting money into any investment.
 
IN the share market, a lot of pump and dumps go on. You need to be very careful while investing. Before you buy shares, you need to see whether the the share price is the result of growing business.
 
The cautionary advice you stated out here is very important,because the future outlook of the organisation is very important to observed,as well as ther financial record under review,then their board of directors.
 
A pump-and-dump plan is an illegal way to increase the value of a stock by making false, deceptive, or wildly overstated assertions.
Typically, micro- and small-cap stocks are the focus of pump-and-dump scams.
Heavy fines are imposed on those found guilty of running pump-and-dump systems.
 

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