Okay kiddo, have you ever played a game where someone tries to cheat you out of your toys or candy? Well, some grown-ups play a game like that too but with something called stocks. Stocks are like pieces of a company that people can buy and sell.
Microcap stock fraud is when bad people cheat other grown-ups out of their money by lying about the company they are selling stocks in. They make the company sound like it's going to be worth a lot of money, but really it's not. It's like someone telling you they have a really cool toy to trade but when you get it, it's just a broken toy that's not worth anything.
These bad people also hire other people to call and convince people to buy the stocks, even if it's not a good idea. They might also make fake news about the company to make it sound more valuable than it really is.
It's important to remember that buying and selling stocks can be a good way to make money, but you should always do your research and make sure the company is really worth it. Never trust someone who is trying to cheat you out of your money.