What is a Pump and Dump Scheme?

A "pump and dump" scheme is a fraudulent practice where individuals artificially inflate a stock's price through false or misleading promotions, often via social media, YouTube, or messaging platforms. 

Once the stock price rises due to increased investor interest, the perpetrators sell their shares at the elevated prices, making substantial profits. 

Subsequently, the stock's value plummets, leaving unsuspecting investors with significant losses.

Recently, in the Sadhna Broadcast case, actors Arshad Warsi and Maria Goretti were implicated for promoting the stock through misleading YouTube videos, leading to inflated prices before selling their shares.