Quote:
Originally posted by Moneyguy1
Zeke...Look up "Boiler Rooms" . I can't recall the movie about the activity, but if hype can increase demand for a low cost stock and you as the "promoter" were smart enough to own a bunch, then when the demand drives the stock up, say, 100%, then you happily sell yours off and everyone else is stuck with something no one really wants. And YOU are the one that goes out and buys that nice 911!!
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Bob, the movie about boiler rooms is called... wait for it... Boiler Room.
It's kind of a Gen-X Glengarry Glen Ross.
But your point is well made. The penny stock pushers (and yes, I'm on the damn lists, too) get to people who see it as a kind of lottery. They'll throw in a couple of bucks and maybe 100 other people will get excited too, and the stock will go up. Of course they'll lose money on the deal because the increase won't offset the commissions... but it's all just Vegas, baaybee.