What does P & D mean?
Definition: P & D
P & D is short for pump and dump. Used as a term when trading stocks, when an investor buys shares and then begins spreading false rumors on various forums. The stock price goes up on rumors, and the original investor sells with a profit.
Pump and dump schemes have existed in the financial sector since humans began trading on markets. Examples can be found throughout history originating through word of mouth. Later it became popular to pump and dump stocks through the mail and eventually over the phone by cold calling. The Wolf of Wall Street is a notable pump and dumper. Pump and dump schemes are illegal and the wolf of Wall Street went to prison for his schemes.
With the the advent of the internet it has become easier for people to pump and dump a stock. Online investors use social media platforms and apps to provide misleading information to other potential investors in hopes of driving a share price upwards.
Schemers will typically target micro cap stocks for pump and dump schemes.
”This subreddit is becoming a P&D.”
“How is a massive shorting of a stock any different from a pump and dump?”
“I DO NOT advocate pump and dump schemes.”