Appendix D. Detecting Scams, Frauds, and Pump and Dump

If you’re like me, you probably get frequent e-mails from people you don’t know, advising you to buy stocks you’ve never heard of. These missives read like research reports from professional stock market analysts, profiling companies that have just developed exciting new products or services with huge market potential.

For instance, recently my new friends sent me tips about the following:

• A “renowned” computer maker that that was just about to introduce a line of laptops with astounding features that no other company could match

• A company about to introduce emergency 911 services for Internet-based long-distance telephone services

• A company that just successfully completed testing ...

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