Pump and Dump

question 46

Multiple Choice

Pump and dump:

• A) is a term for downloading music.
• B) refers to posting stock information on the Internet to increase its value before you sell.
• C) is not prohibited by the SEC.
• D) both b and c

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Definitions:

Par Value

The stated or principal value of a stock or bond as declared by the issuer.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the excess over par value.

Preferred Stock

A type of equity security that usually provides a fixed dividend prior to any dividend payments to common stockholders.

Treasury Stock

Shares of a company's own stock that it has repurchased or never issued to the public.