Misleading financial analysis

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Financial analysis of an organization is misleading when it is used to misrepresent the organization, its situation or its prospects.

This type of deceit is sometimes used to obtain money by misdirecting people to invest in a stock market bubble, profiting (or assisting others to profit) from the increase in value, then removing funds before the bubble collapses, for instance in a pump and dump scheme.

Financial regulators exist to try to prevent such fraud.

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