DAGMA Publishes Five Stock Market Scams to Avoid

Online, April 11, 2011 (Newswire.com) - The most recent issue of DAGMA, an industry newsletter for stock market investors, shines the spotlight on how stock market newsletters scam investors with false stories.

Newsletters purporting to offer advice and hot tips on stocks for investors, says the DAGMA article, are often fronts that help scammers prey on unsophisticated investors. It goes on to explain how each of the five most common stock market newsletter scams work. In the Pump and Dump, for example, the scam artist buys a large block of a particular stock, then publishes a tip pushing the stock as a hot buy. When readers buy and artificially inflate the price of the stock, the scam artist dumps his stock and pockets the profit. Armed with the descriptions of the five most popular stock market scams, investors can evaluate information offered in stock market newsletters and avoid scams.

DAGMA goes further to outline what readers should expect from a stock market newsletter, including all of the information that an investor needs to make informed decisions on when to buy and sell stocks on the market.