Some more popular wicked popular among penny stock that need to be avoided are as follows:
- Free Penny Stocks Newsletter: There are numerous free penny stock newsletters available in the market. Unfortunately most of them are misleading and are major source of pump and dump schemes. It is simple to understand that one, who is expertise in giving top stock picks, will never provide them for free. It is a highly specialized skill and requires lot of efforts to pick the best stock out of the lot.
- Pretending to Provide Insider tips in Forums: Forum is a good place for traders to interact. They become a part of the community and share their respective ideas about share market investment. Investors especially the small one, need to be cautious as there are companies who have hired professional to hype stocks in forums. These professionals are well paid hired consultants and they know how to make story sound and believable with fake press releases.
- Miss-Dialed Message: This is a new version introduced by fraudsters to miss guide the masses. Here you will get a message from any stranger, leaving a message of a hot tip and pretending that this message was for someone else. It reality, it is trap, where in the message of hot tip have been conveyed to generate buying among masses so as to artificially inflate the stock price.
- Reverse Mergers: Often it is seen that private company in order to get publicly traded without any hassle and expense, gets itself merge with public company. This is also done by that private company to falsify their earning and get their price inflated. Investors need to be cautious and should properly review the business history so as to detect ant spotty activity in the merger. here is a good post to read more about Penny Stocks Popular Wicked Schemes to Avoid