The CAN-SPAM Act of 2003 and stock spam emails

Authors

  • Bill Hu College of Communications, Arkansas State University
  • Thomas McInish Fogelman College of Business and Economics, The University of Memphis
  • Li Zeng College of Communications, Arkansas State University

DOI:

https://doi.org/10.61190/fsr.v18i1.4936

Keywords:

Text classification, Market manipulation, Stock spam

Abstract

One goal of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 is to combat pump and dump stock spam email schemes aimed at individual investors. The Act specifies requirements for those who send commercial emails. We find that only 60% of the 40,000 stock spam emails analyzed follow these disclosure requirements and emails that disclose conflicts of interest have a lower market impact. After the peak spam email day, stock prices decline, indicating that individual investors lose money. A Securities and Exchange Commission crackdown in 2007 reduced the impact of stock spam emails.

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Published

2009-03-30

Issue

Vol. 18 No. 1 (2009): FSR Spring 2009

Section

New Original Submission

License

Copyright (c) 2009 Academy of Financial Services

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.

How to Cite

The CAN-SPAM Act of 2003 and stock spam emails. (2009). Financial Services Review, 18(1), 87-104. https://doi.org/10.61190/fsr.v18i1.4936