Poop And Scoop

DEFINITION of 'Poop And Scoop'

A highly illegal practice occurring mainly on the internet. A small group of informed people attempt to push down a stock by spreading false information and rumors. If they are successful, they can purchase the stock at bargain prices, as the overall marketplace will have sold off the security, causing the price to fall dramatically.

BREAKING DOWN 'Poop And Scoop'

Poop and scoop is the opposite of a pump and dump, in which one or more individuals will spread false information on a security in the hopes of raising the price artificially and being able to sell their position at a much higher price. Both of these practices are illegal activities and punishable by the SEC in the United States.

A similar tactic employed by insiders is "short and distort," where instead of buying the stocks at a discount when rumors and false information cause the price to drop, unethical investors short sell the security for a profit.

RELATED TERMS
  1. Poop

    A slang term often used to describe inside information or people ...
  2. Short And Distort

    An illegal practice employed by unethical internet investors ...
  3. Material Insider Information

    Material information, about certain aspects of a company, that ...
  4. Freeriding

    1. An illegal practice in which an underwriting syndicate member ...
  5. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  6. Bear Raid

    The illegal practice of ganging up to push a stock's price lower ...
Related Articles
  1. Professionals

    Standard II-B: Market Manipulation

    CFA Level 1 - Standard II-B: Market Manipulation
  2. Investing Basics

    Explaining Insider Trading

    While often associated with illegal activity, insider trading actually encompasses both illegal and legal trading of securities.
  3. Professionals

    Summary And Review

    Summary And Review
  4. Professionals

    Trade Practices

    FINRA/NASAA Series 63: Section 4 Trade Practices. In this section trade practices: suitability, excessive trading, insider trading and selling away.
  5. Active Trading Fundamentals

    The Short and Distort: Stock Manipulation in a Bear Market

    High-quality stock reports needn't be confused with stock manipulators' dramatic claims.
  6. Active Trading Fundamentals

    Short Selling: Ethics And The Role Of Short Selling

    It's safe to say that short sellers aren't the most popular people on Wall Street. Many investors see short selling as "un-American" and "betting against the home team" ...
  7. Term

    Why Financial Spread Betting Gets a Bad Rap

    Spread betting lets speculators trade on price movements. Investors predict whether the spread between the bid price and the ask price will rise or fall.
  8. Investing

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  9. Professionals

    Spreading

    Spreading
  10. Investing Basics

    How To Calculate The Bid-Ask Spread

    It's very important for every investor to learn how to calculate the bid-ask spread and factor this figure when making investment decisions.
RELATED FAQS
  1. What is the difference between wash trading and insider trading?

    Explore the differences between two trading practices, wash trading and insider trading, and find out why these practices ... Read Answer >>
  2. What are the best ways to protect trade positions against false signals?

    Find out why it is important that traders learn to protect themselves against false signals, and read about some of the most ... Read Answer >>
  3. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  4. How often should I measure my company's key performance metrics (KPIs)?

    Learn the definition of illegal insider trading while reviewing the people who can be involved and the regulations and consequences ... Read Answer >>
  5. How does short selling help the market and investors?

    Find out how short sellers provide a service to the market by acting as a check against overvalued companies and exposing ... Read Answer >>
  6. What types of stocks have a large difference between bid and ask prices?

    Find out which factors influence bid-ask spread width. Learn why some stocks have large spreads between bid and ask prices, ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center