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Stock spam works

There's a neat article over at the Social Science Research Network on the effect of stock-pumping spam emails on market price.

"For a stock that is touted at some point during our sample period, the probability of it being the most actively traded stock in our sample jumps from 4% on a day when there is no touting activity to 70% on a day when there is touting activity."

Long story short, the reason spam is still a significant problem is because it works.

Comments

by Guangzhou Global Telecom - Stock Spam 2.0? (not verified) - 06/05/2007 - 09:17

[...] previous articles, I spoke about some research which established that stock spam works, as well as mentioned a report about how stock spam [...]

by New Mediaist: Internet Marketing &raquo; How stock spam work (not verified) - 05/16/2007 - 10:30

[...] a previous post I referenced a study which concluded stock spam works. But HOW does it work? Great article on how those email’d spam images find their way to your [...]