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This stock investment scheme involves short selling a stock while slamming the company with bad rumors to force the price of the stock down.

This fraudulent stock inve

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

stment scheme is the exact opposite of the classic pump and dump scheme. In the pump and dump scheme, perpetrators of this scheme will aggressively promote a penny sto

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

k so that they can jack up the price of the stock and then sell their holdings leaving everybody else holding a bunch of worthless stocks.

During a bull market, this s

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

heme is very effective because investors easily succumb when the majority of stocks rise in value. In bear markets, the opposite can occur. Investors are convinced th

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

t stocks are overvalued and will lose value.

What is short selling of a stock?

Short selling is a stock market terminology for selling a stock that you do not

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

wn with the hope that it will go down in value. While stock purchases are done with the hope that the value will increase, when you short sell a stock, you have the in

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ention to buy it back at a future date. If the stock decreases in value, you have sold it “high” and bought it back “low.” This is how all stock investors make money.

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

Buy “low,” sell “high” or sell “high,” buy “low.” Simply put, you borrowed a stock temporarily at a high price and quickly sold it. At some time in the future after

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ou sold it, you go ahead and buy it back hopefully at a lower price to collect a profit. Short selling is a very risky stock trading strategy since you are locked into

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

buying the stock at a specified price. If the stock did not go down in price as you wanted, but instead went up in price, you lose money. The purpose of the short and

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

slam scheme is to minimize the risk that the stock will go up in value.

The Short and Slam Scam

Shysters of this scam attempt to profit in this type of investm

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ent fraud by promoting fear. They will use online screen names that imply that they are associated with the NASD or the SEC or that they are experts in locating worthl

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ss stocks. Their objective is to convince investors that every advocate of the stock is associated with the company and that the SEC is maintaining a watchful eye and

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ill halt the stock. Short-and-slam shysters will pretend that they are looking out for the investors’ interests. These perpetrators will post bad information about a

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ompany on message boards such that information favorable to the company will be obscure. Such postings include “Sell your holdings before the price goes down” and “Inv

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

stors who want to enter a class action lawsuit can contact.” The market manipulator will do everything he could possibly do to keep the buyers out of the stock and kee

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

the price going down.

The net effect is that investors who bought stock at higher prices in the beginning sell at lower prices toward the end because of their false a

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

sumption that the stock is junk. Simultaneously, perpetrators of this scam cover themselves at low prices and lock in their profits. This has a bad effect on the comp

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ny whose stock was bad-mouthed as well as all the investors who succumbed to this scam.

There are lots of investment fraud schemes out there such as the short and slam

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

scam. It is up to you to educate yourself to recognize what is and is not legitimate. By doing so, you can minimize becoming a victim to the crime of investment fraud

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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