Here's another interesting report on how junk email or spam can make money for those smart enough.Junk emails that encourage you to buy certain shares or stocks are quite effective, according to German researchers. As for me, I normally deleted them straight away if I see them, but that may not be the case with uneducated email users who can't tell the difference with false information.
Researchers from the Technische Universitat Dresden last week found out that this "pump-and-dump" scams where spammers send out false stock information to encourage people to buy shares, were found to both increase the traded volume and artificially boost the share price.
Three groups of people are involved in the trading. The spammers themselves benefit by quickly selling pre-bought shares, once 'naive traders' have pushed up the share price by buying on the advice of the spam. The third group, dubbed "smart" traders, recognise that a scam is being attempted and "jump on the bandwagon" before also quickly disposing of shares, according to researcher Rainer Böhme.
Making Money with Stock Spam source
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