Spam Stock Tips Work

Ever wonder if anyone buys stock based on the SPAM email? New academic study says yes, SPAM works! At least for the senders of the email.

The authors of the study, SPAM Works, Professors Frieder and Zittrain of Purdue and Oxford Universities, found that like it or not, smart or not, people buy the stocks listed in those unsolicited emails.

The authors show that the trading volume of the stock being touted in the email shot up on average by 1300% on the day that the SPAM messages were sent. Unfortunately, but probably not surprising, most who buy the stock in the email lose money. However, people who buy the stock before the email was sent, most likely the senders of the email, tend to turn a hefty profit.