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.

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