SEC Cracks Down on Alleged 'Pump and Dump' Scams
The US SEC is taking action against American firms allegedly linked to suspected Chinese 'pump and dump' schemes. These scams inflate stock prices through misleading information to sell at a profit. This move aims to protect investors from fraudulent practices and ensure market integrity.
The United States Securities and Exchange Commission (SEC) is intensifying its scrutiny on American companies allegedly involved with suspected Chinese 'pump and dump' frauds, according to reports from the Financial Times.
These schemes, often orchestrated with false promotional tactics, involve artificially boosting the stock price before selling off shares for profit, potentially misleading investors.
The regulatory authority's actions underscore its commitment to safeguarding investor interests and maintaining the integrity of financial markets.
(With inputs from agencies.)
Advertisement
Google News