News today that the SEC has decided to try and regulate away a problem that the market could easily fix for itself. Suspending trading in 35 companies that have been the subjected of repeated ramping spam may look like a fix, but it has obvious drawbacks, not least its reliance on regulators being able to move faster than the spammers. As I've said before, the solution to this problem can easily be implemented at the broker end. You can't buy shares without going through a broker, so all that's needed is a warning at the broker's site if you try to trade a share that's currently the subject of a scam. How hard can it be for brokers to find out which stocks are being spam-ramped, given that the explicit point of the spam is to send it to as many people as possible? Perhaps Google, who seems rightly concerned about the problem, could simply send them a list collected from Gmail.
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