SEC Cracks Down on Stock Spam

NewYorkTimes.com is reporting the SEC is halting the trading of 35 penny stocks for ten days, due to stock spam manipulation.

ValueWiki loves identifying pump and dump schemes. We’ve created a wiki page where users can identify stocks being spammed, and we’ve covered some pretty nefarious penny stock schemes like IDWD, SLJB, and CSHD. This is a great use of the Wiki.

Stock spam is now one of the highest sources of spam on the internet. It is important to note that in almost all cases, the underlying stocks are passive victims of the promotion scheme, which can have devasting results on a company’s stock price and credibility. Here are some resources that I have noted on ValueWiki:

*SpamNation’s ongoing list of targeted companies
*A study of the losses an investor can incur by following stock spam
*A study tracking the effects of stock spam on stock prices
*NPR story on how stock promoters profit from stock spam
*Extensive stock spam information at NASD.com

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