Editing Pump and dump (section)

====Spam====
Pump-and-dump stock [[scams]] are prevalent in [[Email spam|spam]], accounting for about 15% of spam e-mail messages. A survey of 75,000 unsolicited emails sent between January 2004 and July 2005 concluded that spammers could make an average return of 4.29% by using this method, while recipients who act on the spam message typically lose close to 5.5% of their investment within two days.<ref>{{cite journal|author=Frieder, Laura and [[Jonathan Zittrain|Zittrain, Jonathan]]|title=Spam Works: Evidence from Stock Touts and Corresponding Market Activity|date=March 14, 2007|publisher=Berkman Center Research Publication No. 2006-11|ssrn=920553}}</ref><ref>{{Cite news |url=http://news.bbc.co.uk/1/hi/technology/5284618.stm |title=Spammers manipulate stock markets |date=25 August 2006 |work=BBC News}}</ref> A study by Böhme and Holz<ref>{{cite journal |last1=Böhme |first1=Rainer |last2=Holz |first2=Thorsten |title=The Effect of Stock Spam on Financial Markets |journal=SSRN Electronic Journal |date=April 2006 |volume=April 2006 |doi=10.2139/ssrn.897431 |s2cid=12236853 |url=https://www.researchgate.net/publication/228199058 |access-date=27 September 2018}}</ref> shows a similar effect. Stocks targeted by spam are almost always penny stocks, selling for less than $5 per share, not traded on major exchanges, thinly traded, and difficult or impossible to [[Short (finance)|sell short]]. Spammers acquire stock before sending the messages and sell the day the message is sent.<ref>{{cite web |last1=Hanke |first1=Michael |last2=Hauser |first2=Florian |title=On the Effects of Stock Spam E-mails∗ |url=http://www.ebs.de/fileadmin/redakteur/funkt.dept.finance/DGF/downloads/Paper/No-262.pdf |website=EBS Universitat |access-date=27 September 2018 |archive-url=https://web.archive.org/web/20160305083412/https://www.ebs.edu/fileadmin/redakteur/funkt.dept.finance/DGF/downloads/Paper/No-262.pdf|archive-date=2016-03-05}}</ref>