Stock Markets and Spam
Writing with Laura Freider of Purdue University, in 2008 Zittrain published, Spam Works: Evidence from Stock Touts and Corresponding Market Activity, in the Hastings Communications and Entertainment Law Journal to document the manipulation of stock prices via spam e-mail. They found evidence that "stocks experience a significantly positive return on days prior to heavy touting via spam" and that "prolific spamming greatly affects the trading volume of a targeted stock". Apart from transaction costs, in some circumstances the spammer earned over 4% while the average investor who bought on the day of receipt of the spam would lose more than 5% if they sold two days later. Frieder said in 2006 that she knew of no other explanation for their results, but that people do follow the stock tips in their spam e-mail.
Read more about this topic: Jonathan Zittrain
Famous quotes containing the words stock and/or markets:
“And anyone is free to condemn me to death
If he leaves it to nature to carry out the sentence.
I shall will to the common stock of air my breath
And pay a death tax of fairly polite repentance.”
—Robert Frost (18741963)
“When the great markets by the sea shut fast
All that calm Sunday that goes on and on:
When even lovers find their peace at last,
And Earth is but a star, that once had shone.”
—James Elroy Flecker (18841919)