[Gllug] A few words on the topic of stock spam

[John G Walker]

On Wed, 11 Jul 2007 08:47:38 +0100 John Winters <john at sinodun.org.uk>
wrote:

> I think the stock pumping spam is simply going to run out of steam
> soon. It's the same problem that pyramid schemes run into - the
> number of people in the population is large, but you need an infinite
> population to sustain such schemes for any length of time.

No, it doesn't need an infinite number of people to run the scam.

How it works is that the scammers buy a stock that's  cheap, send out
the emails claiming that it's undervalued and due to rise in price, and
then wait for the price to rise as people start to buy. Once the price
rises, the scammers sell their stock at a profit. The share price then
falls back to the market level (ie the original one).

You could, in principle, run this forever,

-- 
 All the best,
 John
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