You may have heard of “pump-and-dump” schemes. What happens is people buy up shares in a little-known company and send out e-mails and letters, touting the stock. It boosts the price of the stock artificially and gets people buying stock. When enough people get on board, and the price is elevated, the original investors cash out and get out. The bottom then falls out from under those people still in the stock. Some company owners and CEOs don’t even know it’s happening to their companies. The price of the company stock will rise and then fall suddenly. Anytime you are offered an opportunity to invest, it’s your responsibility to do your homework and get to know the company. If you don’t have time to do that, stay away!