Money
What Landed The Wolf Of Wall Street In Prison: ‘Pump And Dump Schemes,’ Explained
If you’ve read about stocks, you’ve probably come across it: the infamous “pump and dump scheme.” Pump and dump is a form of securities fraud that artificially hypes and inflates a stock with false and misleading statements. In fact, the pump and dump is the exact scheme that put the ‘The Wolf of Wall Street’ Jordan Belfort in prison.
So how does it work? Fret not, #WealthGang, we’re here to help.
How it works…
Here an investor or a group of investors promote a stock they purchased at a low price. They manipulate the share price and drive it higher to book significant gains. The stock is generally promoted a “hot tip” or “the next big thing.”
Here’s what the Wolf himself had to say…
The fraudulent investors will state that an upcoming announcement will send the share price “through the roof.” There are several ways to manipulate share prices and these have changed over the years.
The basic idea of a pump and dump scam is to shift supply and demand dynamics. This is done via SMS messaging, email campaigns, online media channels or a fake press release. There are claims to insider information and impending news as stated above.
Again, here’s how the Wolf does it in the Hollywood blockbuster.
If an investor is successful in “pumping” the price of the stock, it will create a sense of euphoria among potential buyers. The increase in stock price and trading volume may convince other retail players to believe in the hype and purchase its shares.
Penny stock are generally targeted in this scam
The pump and dump scheme is tied to penny stocks as it is almost impossible to do so with large-cap stocks or even popular mid-cap and small cap companies. This ploy is used to inflate prices of companies with a small trading volume that are traded over the counter. The stock is then sold for a handsome profit once the price rise has formulated.
Who are impacted in these scams?
More often than not, it is the average retail investor who is a victim of this scam. Retail investors aren’t aware of every market dynamic and are inviting prey.
The lure of fast and easy money is difficult to ignore. Even if the retail investors who are a victim of this scam try to sell off the stocks at a significant loss, they might be unable to do so due to a lack of buyers on the OTC markets.
Recent pump-and-dumps. (Yes, we’re talking crypto.)
The unregulated crypto market has seen several pump and dump scams where investors have burned significant wealth. They need to be wary of a stock tip from someone unknown to them and think why that party would be so willing to give out insider information.
Though there are stock market regulators, such as the SEC, it is difficult to keep an eagle eye on every stock trading on the exchange or over the counter. For whatever it’s worth, as far as crypto goes, even Belfort—the Wolf man himself—says crypto is similar to what he used to peddle.
Jordan Belfort's Bitcoin Warning
Jordan Belfort – Wolf of Wall Street — “I’ve never invested in cryptocurrency, ever, not once, and I never will."Check out Jordan's new book — http://amzn.to/2GXzgegbelfortnyc.com
Posted by BoldTV on Wednesday, February 7, 2018
Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today
Airbnb is a great way to earn money by renting out your home or apartment.
However, did you know that you can also make money by offering experiences on Airbnb? Here are five easy ways to make extra cash today by creating and offering Airbnb experiences.
1. Offer a food tour
If you love food, why not share your passion with others? Create a food tour experience in your city, showcasing the best local cuisine. You can offer a walking tour or a bike tour, and include stops at local markets, restaurants, and cafes. This is a great way to meet new people and earn money at the same time.
2. Teach a skill or hobby
Do you have a skill or hobby that you’re passionate about? Share your knowledge with others by offering an experience on Airbnb. You can teach anything from photography to cooking to yoga. People are always looking for new experiences, and they’re willing to pay for them.
3. Host a cultural event
If you come from a different culture, why not share it with others? Host a cultural event, such as a traditional dance, music, or art class. This is a great way to showcase your culture and make some extra cash.
4. Offer a nature experience
If you live in a beautiful area, offer a nature experience on Airbnb. You can offer a hiking tour, a kayaking trip, or a birdwatching tour. People love to get out into nature, and they’re willing to pay for it.
5. Host a wellness retreat
If you’re passionate about wellness, why not host a retreat? You can offer yoga classes, meditation sessions, and healthy meals. This is a great way to help people relax and recharge, while earning some extra cash.
In conclusion, offering experiences on Airbnb is a great way to make some extra cash. With these five easy ideas, you can get started today.
For more ideas and tips on how to make money, check out this Airbnb guide inside our academy.
If you’re an Airbnb host looking to increase your revenue, there are several strategies you can implement to make your listing more appealing to potential guests.
Here are 10 tips for making more money with your Airbnb listing:
- Set competitive pricing: Research the prices of similar listings in your area to ensure you’re offering a competitive rate. Consider lowering your prices during slow seasons or offering discounts for longer stays.
- Offer extra amenities: Providing extra amenities, such as a pool, hot tub, or complimentary breakfast, can make your listing more attractive to guests and justify a higher price.
- Invest in high-quality photos: High-quality photos of your space can make a big difference in how many bookings you receive. Consider hiring a professional photographer to capture the best aspects of your listing.
- Keep your listing up to date: Make sure your listing accurately reflects the current state of your property. Update your photos, descriptions, and amenities regularly to keep your listing relevant and appealing.
- Respond promptly to inquiries: Quick responses to guest inquiries can lead to more bookings and positive reviews. Make sure to check your messages frequently and respond as soon as possible.
- Provide excellent customer service: Going above and beyond for your guests can lead to positive reviews and repeat bookings. Make sure to communicate clearly and address any issues promptly.
- Offer local recommendations: Providing guests with recommendations for local restaurants, attractions, and activities can enhance their experience and justify a higher price for your listing.
- Allow instant bookings: Allowing guests to book instantly can make your listing more appealing to those who need to book at the last minute. However, make sure to set clear guidelines for instant bookings to avoid any issues.
- Offer discounts for repeat guests: Offering discounts to guests who have stayed with you in the past can encourage repeat bookings and increase your revenue over time.
- Keep your space clean and well-maintained: A clean and well-maintained space can lead to positive reviews and repeat bookings. Make sure to keep your space clean and address any maintenance issues promptly.
Implementing these 10 tips can help you make more money with your Airbnb listing and improve your overall hosting experience. Happy hosting!
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