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How Investors Are Tricked By Penny Stock Scams

As more retail investors trade penny stocks, innocent traders may turn to victims. Penny stocks are more vulnerable to fraud and have a history of multi-million dollar scams. “I’m getting a lot of calls from investors who are duped and getting scammed by penny stock operators,” Jacob Zamansky, an investment fraud lawyer, told CNBC. Watch this video to learn more about how ultra-low-priced stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement crackdowns. Chapters: 00:00 — Introduction 01:38 — $5 or less 04:27 — Scammers 08:44 — Enforcement Produced and edited by: Andrea Miller Animation: Andrea Schmitz, Jason Reginato Supervising Producer: Lindsey Jacobson » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC How Investors Are Tricked By Penny Stock Scams

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