Search results
Results from the WOW.Com Content Network
Microcap stock fraud is a form of securities fraud involving stocks of "microcap" companies, generally defined in the United States as those with a market capitalization of under $250 million. Its prevalence has been estimated to run into the billions of dollars a year.
In business and investing, term microcap stock (also micro-cap) refers to the stock of public companies in the United States which have a market capitalization of roughly $50 million to $250 million. The shares of companies with a market capitalization of less than $50 million are typically referred to as nano-cap stocks.
In microcap fraud, stocks of small companies of under $250 million market capitalization are deceptively promoted, then sold to an unwary public. This type of fraud has been estimated to cost investors $1–3 billion annually. [19] Microcap fraud includes pump and dump schemes involving boiler rooms and scams on the Internet.
With relatively few shares available to be traded, micro-cap stocks favored by individual investors could be hit hard in a downturn. Analysis: Micro-cap stock surge shows investor risk taking ...
Regulators brought securities fraud charges against actor Larry Wilcox, who played California Highway Patrol officer Jon Baker on the TV show "CHiPs." The SEC alleged that Wilcox and at least a ...
The idea of investing in micro-cap stocks, companies with a low market capitalization, that usually ranges between $50 million and $300 million may seem not logical now as there are a lot of risks ...
Stratton Oakmont participated in pump-and-dump schemes, a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and ...
Stocks traded on these markets are usually thinly traded microcap or penny stocks. Both retail and institutional investors generally avoid them, because of fears that share prices are easily manipulated and the potential for fraud. The SEC issues stern warnings to investors to be aware of common fraud and manipulation schemes.