How to Spot a Pump and Dump Stock: What Jim Cramer Looks For

The term "pump and dump" has been circulating in recent weeks following volatile stock action in the cannabis sector. 

By definition, pump-and-dump is an illegal scheme to boost the price of a stock through illegal or misleading statements. 

In the video above from TheStreet Live last week, Jim Cramer says Sundial Growers  (SNDL) - Get Report is an example of how to spot a pump and dump stock. Cramer urges the federal government to look closely at Sundial and other names and take action to protect retail investors. 

Sundial was down upwards of 10% in early trading Friday. 

Latest on Sundial: Sundial Growers Sinks on Plan to Issue $1 Billion in Securities