In a first step, shares of mostly foreign companies are recommended, especially in – stock exchange letters as well as by telephone calls and e-mails. – Allegedly independent experts certify the paper an imminent high price increase. – When the turnover and the price have risen due to the artificially generated demand, – the advisors sell their stocks acquired before the recommendations at a high profit. – The securities, which have now fallen in value again (often to zero) as a result of this market manipulation, give the buyers a loss. – See investment recommendation, cheap copy, blue-sky laws, steam room, dingo stocks, frontrunning, secret tip, glamour stocks, field hockey stick offer, Internet offers, capital market, gray, market abuse, one-hit wonder, push, rebbes, scalping, spam mails, consumer complaints. – Cf. BaFin Annual Report 2007, p. 173 (pump and dump activities increased in 2007), BaFin Annual Report 2008, p. 156 f. (pump and dump in over-the-counter securities).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/