Tumbleweed report highlights how stock-tip spam can have a negative impact

Tumbleweed Communications announced research findings on the correlation between waves of stock-tip spam and the short-term increase of stock trading volume and value. Tumbleweed observed the effects of “pump-and-dump” spamming scams seeking to inflate a penny stock’s price for a quick profit. Its analysis of various stocks targeted by spammers during 2006 shows these scams […]

Tumbleweed Communications announced research findings on the correlation between waves of stock-tip spam and the short-term increase of stock trading volume and value. Tumbleweed observed the effects of "pump-and-dump" spamming scams seeking to inflate a penny stock's price for a quick profit. Its analysis of various stocks targeted by spammers during 2006 shows these scams temporarily inflated a stock’s value immediately following a spam wave, but a few days after the initial spam wave the stock value decreased to levels approaching their original value. More

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