As long as people think that the stock market is an easy place to make money, there will always be people to exploit that greed.
One of the most common scams in the market are pump and dumps. Shady characters pick stock that have less number of outstanding shares (low float). They start sending SMS’, create WhatsApp and Telegram groups, and pay “influencers” to pump the price on social media. Once the price starts moving up, they dump the shares they hold. It’s one of the oldest tricks in the book, and people keep falling for the same thing over and over again.
The latest pump and dump attempt seems to be in Salasar Techno.
Here a few tweets about people being offered money to promote this stock on social media.
https://twitter.com/theBuoyantMan/status/1500726672391573504?s=20&t=4l9QadCq61xT4jocLCb3Kg
https://twitter.com/itsTarH/status/1500757869846687746
https://twitter.com/aditya_kondawar/status/1500784498295721988?s=20&t=4f2m-oRNrEd2vMJ-q7S6ag
We keep cautioning investors from time to time. We now have Nudges for penny stocks on Kite. For example, here’s the Nudge for Salasar:
We also keep writing about stock market scams in the hopes that they might stop people from falling for such scams.
But sadly, a lot of new investors who aren’t aware fall for these scams. You might know friends who unknowingly might fall for such things, please share this with them and caution them.
Please remember, there are no get rich schemes in the market. If you come across such suspicious stocks, please submit a tip to the exchanges: https://www.nseindia.com/submit-tipoff