Operation spamalot

The SEC is doing the right thing by fighting stock spam. The best way to fight the ‘pump and dump’ schemes is through the body that is responsible for controlling stock trading.

However, this is a slippery slope – is it the company’s fault that someone is running a scam on their stock? Quite the contrary – the company’s stock usually takes a dive, and unless the company’s owners are in on the scheme they have the most to lose from this fraud. Some would say the SEC is doing a favor to those companies by suspending trade, but remember how anonymous email is and how easy it is to spam to million of people – if I run a fake pump-and-dump on MSFT or GOOG (in order for it to work I would need a less high-profile stock, but you get the point) should that result in a trading suspension?

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