The Ugly Truth Behind How Stocks Are Manipulated
And why penny stocks are the target market.
The stock market is weird. On one end, you have some of the smartest and most talented individuals perusing companies to extreme measures. On the other, there are a bunch of stocks that nobody usually cares enough to even look at it.
And at this end is where all the monsters like to hunt for their prey. These are some of the dirtiest and sketchiest companies to ever exist.
The way they make money is not by selling products, it’s by selling their shares to regular investors. If I’m being honest, sometimes I feel like these companies are geniuses for coming up with this business model to generate their income.
Is that legal? Borderline.
Is that ethical? Definitely not by a long shot.
Background story
Mostly, companies who would pursue this undertaking are the companies that are cash strapped.
That is because when a company has insufficient cash, there is a huge chance that it will get delisted from the exchange. If this were to happen, shareholders within the company will be forced to suffer huge losses.
