SEC Cracks Down on Spam-Driven Small Stocks
Karey Wutkowski writes for Reuters:
The Securities and Exchange Commission suspended trading on Thursday in the stocks of 35 small companies linked to spam e-mail campaigns urging small investors to buy shares.More here.
The SEC said it launched an enforcement effort to protect investors from potentially fraudulent spam e-mail promoting small company stocks with phrases like, "Ready to Explode," "Ride the Bull" and "Fast Money."
"Today's action will disrupt the operations of these boiler rooms and make it harder for the spammers and promoters to dump their stock on an unsuspecting public," SEC enforcement director Linda Thomsen said at a press conference on Thursday.
The commission said in a statement that an estimated 100 million of these spam messages are sent every week, triggering dramatic spikes in share price and trading volume before the spamming stops and investors lose their money.
posted by Fergie @ 3/08/2007 11:06:00 AM
0 Comments:
Post a Comment
<< Home