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Zerodha warns investors about stock tips from Telegram, WhatsApp and Twitter

Zerodha

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Zerodha warns investors about stock tips from Telegram, WhatsApp and Twitter

Do you invest in the stock market based on tips from social media platforms such as Telegram, WhatsApp, or even Twitter? If yes, then Zerodha has a special message for investors like you.

Zerodha, India’s largest brokerage business, resorted to Twitter on Tuesday (April 20) to caution investors about stock advice on social media networks.

Zerodha pointed out in a tweet how swindlers utilize pump and dump scams to gain money. According to the trading firm, pump and dumps are one of the oldest stock market scams.

Pump and dump schemes are one of the oldest stock market con games.

Zerodha tweeted, “In a pump and dump scheme, the operators who own the majority of the shares raise the prices by disseminating messages via SMS and social media, and then dump the shares as the price rises.”

It added that in a pump and dump, operators who own the majority of the shares change the prices by circulating messages via SMS and social media, and then dump the shares as the price rises.

According to Zerodha, such operators are now using YouTube and Twitter to drive stock values higher. For a long time, SMS, Telegram, and WhatsApp were the most popular platforms for disseminating these stock tips. However, people with significant social media and YouTube followings are now being paid to push stocks via tweets and videos, according to the report.

Zerodha tweeted, “Many investors, unknowingly or out of greed, fall for these advice. When they observe a stock hitting upper circuits, they leap in, but they are stranded after the operators drop the stock. In almost every case, these equities drop by 90% or more and become worthless.”

According to Zerodha , many such incidents have received media attention in the previous few months alone. However, numerous cases have gone undiscovered, according to Zerodha in one of its tweets.

Many investors fall for these advice, either unintentionally or as a result of greed.

When they observe a stock hitting upper circuits, they leap in, but they are stranded after the operators drop the stock. In almost all situations, these equities drop by 90% or more and become worthless, according to Zerodha.

The organization also mentioned that there are hundreds of downright scammy channels for every sensible one. It was pointed out that, ironically, the scammy ones have the most subscribers. Retail inflation for farm and rural employees climbs to 6.09 percent in March 2022, then to 6.33 percent in March 2023.

Finally, Zerodha warned investors not to buy or sell stocks based on random advice on Twitter, YouTube, WhatsApp, and other social media platforms. It stated that you’re putting your money at risk and there are no quick solutions to get rich.

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