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How to avoid Pump and Dump scams?



Avoid pump and dump scams

The world of investment offers both, opportunities to grow wealth and potential risks for investors looking to grow wealth. However, an unethical practice called the “Pump and Dump” scam preys on inexperienced investors, causing significant losses.

The “Pump and Dump” scam is a market manipulation in which some individuals or groups artificially inflate the price of a stock, cryptocurrency, or asset through false and misleading information and aggressive marketing. This aims to attract inexperienced investors to buy stocks at inflated prices, pushing the stock prices up. Once the prices are high enough, perpetrators quickly sell off their holdings, booking a significant profit and leaving innocent investors worthless.

Phases of Pump and Dump Scam

  1. Accumulation Phase – Scammers identify less priced and less traded stocks, usually penny stocks or small-cap stocks, which are easier to manipulate due to their limited activity. They start accumulating a significant number of shares at a relatively low cost.
  2. False information and aggressive marketing – After securing their positions, the next step is to promote the stock to inexperienced investors. They use social media platforms to spread false positive news and misleading information about the stock.

“Beware of Misleading Telegram Stock Market Channels”

They create telegram or youtube communities with millions of subscribers and provide them with calls or tips, promising high returns. A large number of inexperienced investors follow their calls blindly, pushing the price of the stock up.

3. Price Surge – As the investors fall victim to the hype, the demand for the stock surges rapidly. This creates a fear of missing out among other investors, causing the price to skyrocket.

4. Dumping Phase – Once the price reaches its peak, scammers quickly sell off their holdings, known as the “dumping phase”. They exit their positions, booking a significant profit, causing a massive sell-off.

5. Investors’ loss- Due to a sudden increase in supply, the value of the asset has dropped, causing investors who purchased it at an inflated price to suffer significant losses. These investors are now panicked about facing further losses and are rushing to sell their securities, which is further decreasing the value of the asset. Consequently, the stock value has collapsed.

How to spot it?

Identifying a pump and dump stock requires keen observation, better knowledge, and thorough research. It is always advisable to evaluate the source of promotion when one comes across any stock recommendation. Don’t believe in unknown individuals blindly and avoid making impulsive decisions. Additionally, study the fundamentals of the company using reliable financial resources and technical indicators to figure out the reasons for the surge in price.

Inexperienced investors should always seek advice from SEBI-authorized financial advisors or portfolio managers for informed decisions.

How to trade?

Pump and dumps are unethical and manipulative activities and trading in pump and dump stocks can result in several financial losses. Thus it is important to set clear exit strategies before entering the trade.

Determine target and stop loss to minimize your losses. It is always tempting to ride the wave of rising stock prices, during the pumping phase, but holding a security for too long can increase the risk and significant losses on price crashes. Additionally, one must always enter a long position as a short position may become challenging due to high demand.

It is always advisable to trade in legitimate investments with significant research than pump and dump stocks.


Victims of pump-and-dump scams often suffer substantial losses and lose confidence in the market’s legitimacy, affecting the market’s reputation.

To safeguard one’s interest against pump-and-dump scams, consider researching the company and source of promotion thoroughly. Avoid fear of missing out and make informed decisions.

The Sadhna Broadcast Ltd. Scam

“Pump & dump: How SEBI caught Arshad Warsi & others ‘manipulating’ stock prices in ‘influencer’ scheme”

Two youtube channels run by Manish Mishra named, “Moneywise” and “The Advisor” were promoting shares of Sharpline Broadcast Ltd. and Sadhna Broadcast Ltd. These channels were spreading false positive news about the stocks.

They claimed that the companies were involved in the Adani deal and the American contract. Additionally, mutual funds and promoters are increasing their stakes. These Youtube channels gained millions of views and the stock volumes rose to crores from April’22 to June’22.

As a result, Sadhna Broadcast Limited’s stock price also soared by 1150% in the same three-month period and recorded a significant fall in price later.

Sadhna stock – 1000% return in 3 months

Similarly, Sharpline Broadcast Ltd.’s stock price surged from Rs 8 to Rs56, a remarkable 600% return in three months, and currently trading at Rs11.

Sharpline stock – 600% return in 2 months

In summary, These scams are serious threats to investors and affect the market reputation and investors’ trust. By promoting financial literacy and responsible investing practices, we can safeguard ourselves from facing significant losses.

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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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