Stock JunkWhat is it?Emails or Faxes that promote various companies or stock symbols in the hopes that the recipients will purchase the stock and hence increase the price of that stock in short period. These notices often include misleading or intentionally false information about a company. More... Why is it a problem?These are typically part of "pump and dump" stock market scams. It is illegal in the U.S. to present misleading information about a company or stock. By getting people to purchase a stock it increases the price, then those behind the spam sell the stock and make a profit. It is illegal in the U.S. to manipulate the stock market in such ways. It is important to note that the featured companies are often unaware that they are being used in these schemes. More... How would it effect me?If you purchase one of these stocks, you will probably lose money. If you already own one of the featured stocks, you will probably lose money. If you own or work for a company that is featured it could affect the company in a negative way. These scams damage the overall market. These scams only benefit the few behind them, the rest of us are victims. Buying and selling stock is a risky business even without the fraud! Research investments carefully! More... Samples
Stocks Junked Send it to stockjunk@coldrain.net or to
enforcement@sec.gov. Stock Junk Damages Market
KnujOn has been vigilant when it comes to dealing with stock junk. We, and many others, have insisted
that it is more than a nuisance but constitutes a complex fraud scheme, harms the free market, and erodes
consumer faith. Now two professors have published a detailed study that concludes that stock spam is effective
at increasing the price of stock in the short term. This is all that is needed for those behind the emails
to make money and then dump the stock. This often leaves true investors with loss and ruins the companies
targeted in the scam. Understanding Stock Junk
What is stock junk mail? Junk email/fax that is usually part of "pump and dump" stock fraud. In short it is an
attempt to quickly increase the price of a stock so the shares can be sold at a higher price.
This practice has nothing to do with advertising a company or increasing the value of that company. It
also has nothing to do with making money for you in the stock market. Them scams are merely
for those sending the junk mail to benefit from higher stock prices. When the pump holders starting selling
the stock, the price will fall and other buyers are left with stock that it often at a lower price than
when purchased. See sell short. It is
doubtful that the companies behind the stock are involved in the junk mail since the "pump and dump"
practice does not benefit them in the end. I would not recommend buying any stocks based on unsolicited "newsletters." More InformationWhat is a Stock Ticker? (wikipedia.org)What is a Stock Symbol? (wikipedia.org) What is OTC? (wikipedia.org) What is a Pink Sheet? (wikipedia.org) What is a Penny Stock? (wikipedia.org) What is Market capitalization? (wikipedia.org) What is a Micro-Cap? (wikipedia.org) What is a Blue Chip? (wikipedia.org) U.S. Securities and Exchange Commission on Internet Fraud (sec.gov) Be Alert for Telltale Signs of Online Investment Fraud (sec.gov) Tips for Checking Out Newsletters (sec.gov) Tips for Checking Out Newsletters (sec.gov) SEC Center for Complaints and Enforcement Tips (sec.gov) NASD BrokerCheck (nasd.com) NASD BrokerCheck (nasd.com) What is NASD? (nasd.com) What is NASDAQ? (nasdaq.com) What is AMEX? - not the same as American Express (amex.com) What is Bloomberg? (bloomberg.com) Investment Scams: Newsletters (investopedia.com) Internet Makes Stock Scams Easy `Pump and dump' now a high-speed hustle (sfgate.com) Hackers prey on online stock trades (money.cnn.com) International Stock Markets Stock Markets of the World(escapeartist.com) CasesAFML  AMSN  APPM ARSS BLNM CBFE CFSC CICG CNHC.PK  CTCX FTRM.PK  GDKI HULN IDSM  KGBC LITL MAKU.OB  MBMC MBWC MISJ MPRG PRGJ QCPC QEGY RREF SRRL.OB  SYNI TERX THRI VMCI VSUS VXBX WBRS WEXE Typical Stock Scam Emails
In what we consider to be further progress against e-fraud, recent stock spam examples
are becoming harder and harder to read. They have to resort to this to avoid detection and reporting,
which completely defeats the purpose of the spam. Keep up
the good work everyone!
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