As a stock gets promoted through spam, it can lead to short-term increases in a company's share price. However, this artificial price is usually followed by a sharp fall as the spammers sell their positions at the higher prices to make money (as outlined in the example above). This can be very damaging to the company - as well as to the investor in the company.
If you are active in the market, be careful and don't believe what you get in your email box. If someone is pumping stocks, chances are they're doing so for their own, personal gain - not yours. Always rely on known, secure sources for your information - or rely on a reliable brokerage firm.
By utilizing the same thought process of stock spammers, you will now know (with Qwoter Stock Spam Tracker) when promoters are sending millions of e-mail messages at a time promoting their "can't miss" stock tips. When enough recipients inexplicably buy in, the price soars and then (YOU) the investor can sell off their shares at the top of bubble - not at the bottom after the spammers make their money off of you.
If you are active in the market, be careful and don't believe what you get in your email box. If someone is pumping stocks, chances are they're doing so for their own, personal gain -- not yours. Always rely on known, secure sources for your information -- or rely on a reliable brokerage firm.
The common investor will now have an information tool in which to make a more informed investment decision, whether the investor chooses to catch the wave early or to stay away from a "too good to be true" stock scam, at least he or she will have a better map of the terrain surrounding their investment decision.
View the latest Stock Spam from our Spam Report.
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