Summary of Penny Stock Chronicles

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

Penny Stock Chronicles summary
Start getting smarter:
or see our plans


8 Overall

8 Importance

8 Innovation

9 Style


Chris DiIorio was not an uneducated investor or unfamiliar with the financial markets. Yet in 2006, the former Wall Street equity trader found himself on the wrong side of a speculative penny stock investment, quickly losing $1.3 million in paper value. DiIorio vowed to learn the reasons for the boom in his stock pick and its ultimate demise and to discover the truth about the financial actors behind the scenes who manipulated his investment. Journalist David Dayen, who has written numerous articles as well as a book about financial fraud, pens a rich seven-piece narrative on DiIorio’s 10-year obsession. getAbstract recommends Daven’s account of DiIorio’s unproven but convincing analysis to investors, especially those thinking about penny stock investing.

In this summary, you will learn

  • How a Wall Street veteran lost $1.3 million in paper profits on penny stocks,
  • What his 10-year investigation into the causes of the loss reveal and
  • Why large financial institutions buy penny stocks.

About the Author

David Dayen writes for The Intercept, Salon, The Fiscal Times, New Republic, and other publications. He is the author of Chain of Title, a book about three ordinary Americans who uncovered Wall Street’s foreclosure fraud.



Part I: “The Money Is Gone”

In 2006, Chris DiIorio was 39 years old and a seasoned investment professional. He’d been an equity researcher, providing guidance to portfolio managers. Before then, he had worked on Wall Street for many years as an analyst and trader with the investment firm Donaldson, Lufkin & Jenrette, where he routinely conducted large-scale equity buy/sell operations for massive institutions such as Fidelity and Putnam.

DiIorio had significant expertise in traditional stock markets, and he knew how to investigate and analyze heavily traded companies in highly regulated and transparent markets, such as the New York Stock Exchange. However, in 2005, DiIorio ventured into the hazy world of penny stocks – shares of small and fledgling companies trading at fractions of a penny to up to $5. Penny stock trades don’t take place at the formal exchanges but on an electronic exchange known as the Pink Sheets, or the over-the-counter (OTC) Bulletin Board market. In contrast to the shares of major companies regulated by the US Securities and Exchange Commission (SEC), penny stocks are unregulated and tend to be extremely volatile.

DiIorio believed in ...

More on this topic

Customers who read this summary also read

How Youth Navigate the News Landscape
Can America’s Companies Survive America’s Most Aggressive Investors?
Spotify’s $30 Billion Playlist for Global Domination
When Bankers Started Playing With Other People’s Money
The Fall of China’s Hedge-Fund King
Scotland’s Unicorn Hunter

Related Channels

Comment on this summary