Business, Legal & Accounting Glossary
Poop and scoop is a form of illegal stock manipulation, where a scammer tries to drive down the price of a stock through publishing and distributing unsolicited misleading advertising materials so that the scammer can buy the stock at a lower price.
Besides having the most humorous name of various stock manipulation schemes, the Poop and scoop may be the oddest, because the scammer receives no direct financial benefit immediately following the conclusion of the scheme. Poop and scooping seems to have become more prevalent in the Internet age, because the web allows the scammer to spread unsubstantiated negative rumors cheaply, quickly, and often with little risk.
Poop and scoop played a role in the Banking Crisis of 2008 as firms like Bear Stearns and Lehman Brothers were hamstrung in a liquidity crisis and ultimately were rescued or failed. Wild rumors circulated about which of the dominoes would be next to fall putting pressure on share prices. Some blame hedge funds, many of which profited by short-selling the stocks in the midst of the crisis.
pump and dump
short and distort
subprime mortgage debacle
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This glossary post was last updated: 2nd December, 2021 | 3 Views.