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Wednesday, December 29, 2004

Market Term - Pump and Dump


A small group of informed people buy a stock before they recommend it to thousands of investors. The result is a quick spike in the price followed by an equally quick downfall. The people who have bought the stock early sell off when the price peaks. These people are also known as stock operators. Recently, Indiabulls was rumoured to be in the scanner of the operators who have pushed the stock to ridiculously high levels not on par with the earnings expected of the company