The Game

We all know the stock market is a place where future and projections are traded. Lot of the companies are genuine and we have had success stores for over a century. but there are bad apples too. As an investor you should be aware of these

Example

I will show a stock Rexahn Pharmaceuticals, Inc. (RNN). This is a clinical stage pharma company developing new immunotherapy drugs .It has been founded in early 2000s and has been working to bring this technology to users.
However what you see is big whales pumping and dumping the shares

You can see everytime the stock increase there will be dilution of shares to shore up the capital.
look at the last one month chart

As soon as it hit1.65, they announced a share dilution plan that is purchase a stock ,and get a warrant to by another common share at 305 discount. The effective price announced would come to 0.80 per share. needless to say price tanked.
Next step they would do is reverse split so they stay in NASDAQ and fool retail investors. This is far from a success story.One would wonder why it would have 90% analyst buy rating. Reminds me of days just before Lehman going bankrupt ,analyst were saying its a screaming "buy"!!!!

Each share of common stock is being sold together in a fixed combination with a warrant to purchase one share of common stock at a combined offering price of $0.80 per share and related warrant