penny stock fraud - Investment & Finance Definition
Fraud that is committed by speculators in penny stocks, which are the stocks of very small companies with a limited number of shareholders. The insiders purchase the shares and put out false rumors about the company’s prospects; then when buyers emerge, they sell their shares and make a huge profit. The new investors are left with virtually worthless shares.
Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Used by arrangement with John Wiley & Sons, Inc.
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"penny stock fraud." YourDictionary, n.d. Web. 19 August 2018. <http://www.yourdictionary.com/penny-stock-fraud>.
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penny stock fraud. (n.d.). Retrieved August 19th, 2018, from http://www.yourdictionary.com/penny-stock-fraud
