pump 'n' dump

(redirected from Microcap stock fraud)
Also found in: Dictionary, Financial, Wikipedia.

pump 'n' dump

A semantic attack involving fraudulent information that depresses or raises stock values. The perpetrators benefit by buying or selling shares while prices are distorted. One example was a fake press release in April 1994, claiming that a company called PairGain was being unexpectedly bought out at USD $19 per share. PairGain shares rose from $8.50 to $11.25 before the scam was discovered. The hacker was arrested for stock fraud.
Copyright © 1981-2019 by The Computer Language Company Inc. All Rights reserved. THIS DEFINITION IS FOR PERSONAL USE ONLY. All other reproduction is strictly prohibited without permission from the publisher.