Picture this: you're scrolling through your social media and see an influencer hyping up a stock, claiming it's the next big thing 🚀

Tempting, right?

Be careful: this could be part of a Pump and Dump scheme, a notorious stock market crime 🚨

Here's the playbook: scammers buy a stock when its price is low, then "pump" it up with fake news and hype 📈

Unsuspecting investors start buying the stock, which inflates the price even more.

💡Remember: stock prices are determined by supply & demand!

Once the stock price peaks, the scammers sell, or "dump", their shares at this high price, making a hefty profit 💰

The catch? Once they sell, the hype dies down, the stock price plummets, and regular investors who bought in are left with losses 📉

So, how do you avoid getting caught in one? 🤔

1️⃣ Be wary of stock tips from unverified sources like social media influencers, especially if they promise quick, high returns.

2️⃣ Always do your homework before investing. Try to apply what you’ve learned on Bloom about analyzing stocks 📚

3️⃣ Remember, if something sounds too good to be true, it probably is. Trust your gut. 🧠