Editing Pump and dump (section)

==Scalping and social media==
[[File:PnD Scalping Chart Ex.jpg|thumb|Anatomy of a scalping scheme]]
One variation of the pump-and-dump scam is known as "scalping." In a [[scalping (trading)|scalping]] scheme, a stock promoter takes a position in a stock and then touts the stock without disclosing his or her intent to sell the stock.<ref name="autogenerated1">{{cite web | url=https://www.sec.gov/litigation/litreleases/2022/lr25325.htm | title=Michael M. Beck, a/K/A @BigMoneyMike6, and Relief Defendant Helen P. Robinson (Release No. LR-25325; Feb. 7, 2022) }}</ref><ref>{{cite web | url=https://www.sec.gov/news/press/2006/2006-128.htm | title=Press Release: SEC Charges Operator of Stock Picking Website with Secretly Profiting in Investment Scam; 2006-128; August 1, 2006 }}</ref> By recommending the stock (often, but not always, by providing inflated price targets or more generic promises of substantial returns), the promoter convinces others to purchase the stock, providing a temporary rise in share price and volume which allows the "scalper" to then sell his shares on unsuspecting investors and obtain a profit. Scalping scams are frequently effectuated through social media (e.g., Twitter), and may lead to both criminal and civil liability in the United States.<ref>{{cite web|url=https://www.sec.gov/news/press-release/2018-38 |title=SEC Charges Penny Stock "Mailman" With Scalping Investors In Gold Mining Stocks |publisher=SEC.gov |date=2018-03-09 |accessdate=2022-08-30}}</ref><ref>{{cite web | url=https://www.justice.gov/usao-sdny/pr/stock-trader-arrested-and-charged-securities-fraud-using-his-twitter-account-operate | title=Stock Trader Arrested and Charged with Securities Fraud for Using His Twitter Account to Operate a Pump-And-Dump Scheme | date=26 October 2021 }}</ref> Like other pump-and-dump schemes, scalping scams frequently target microcap stocks because their low volume allows relatively small purchase volumes to cause significant spikes in the share price.<ref>{{cite web | url=https://www.jdsupra.com/legalnews/to-the-moon-or-to-the-jail-social-media-7635157/ | title=To the Moon or to the Jail? Social Media Stock Promoters Are Back in the Government's Crosshairs }}</ref> Given the rise of social media, scalping scams have become a significant focus of regulators in the United States in recent years.<ref name="autogenerated1"/><ref>{{cite web | url=https://www.businessofbusiness.com/articles/accused-stock-scalper-alex-delarge-was-arrested-and-kicked-off-of-twitter-now-users-are-asking-whos-next-furu-scam/ | title=Accused stock scalper 'Alex DeLarge' was arrested and kicked off of Twitter — now users are asking: Who's next? | date=28 October 2021 }}</ref>