Q: What is Pump and Dump Scam ?

Ans: 
Pump and Dump Scam:

A company who owns a large amount in a low-priced stock, which is actually an illegitimate business, will target potential investors to persuade them to invest in the stock. As more people would invest, the price of the stock would enhance and when it arrives at its peak , the scammers would sell all the shares to achieve profit and run away, taking with him all your money.
In 2015, when Rakesh Jhunjhunwala was said to have raised his wealth by purchasing 2,50,000 odd shares because of which the shares of the ‘Surana Solar’ experienced an 18% rise, but after the dump-sum scam was discovered, the prices were quashed. That is how a loophole in the system was also discovered. 
The happening of such scams reveals that there is no proper system to check the authenticity of the information being supplied. After getting the benefit of such a  loophole, the Surana Solar made namesake deals easily with the investors that cause them great loss. 

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