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Currency Day Trading The SEC continues to target penny stock schemes.If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.

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Published by IEEE Security & Privacy The most rapidly growing spam category, stock spam, is a modern twist of the classic "pump and dump" securities scam in which unscrupulous characters manipulate a security's price by using various advertising techniques to create artificial demand for it, thus inflating price. By targeting thinly traded securities on unregulated markets, stock spammers can almost guarantee a flash mob attracted by the spam will increase the per share price. spam solutions deploy to stop them.

Online Stock Trading Company June 19, 2005 (AXcess News) New York - The SEC continues to target penny stock schemes. On May 31, 2005, the Commission obtained a preliminary injunction in California federal court, enjoining: George A. Todt of Malibu, California; Sutra Management Corporation; Jeffrey H. Evans of Napa, California; Jetco, LLC; Ray J. Slaback of Dakota, Minnesota; Tempo Financial, Inc.; STB Chip Company; SutraTel Kiosk Corporation (f/k/a Urban Transfer Systems, Inc.);
Lonisson Communications Corporation; Sutra Group, LLC; and PageOne Business Productions, LLC from violating federal securities laws. The Court Order granting that injunction also prohibited Todt, Sutra Management, Sutra Group, PageOne, Evans, Jetco and Slaback from participating in penny stock offerings.

In many cases, business insiders will hire promoters to get individual investors involved. There are a chain of press releases and fake research reports that entice investors into purchasing these stocks. This system is most common in the world of penny stocks. To prevent the bulk of these scams, stop investing in penny stocks. The hype associated with pump and dump scams is similar between scams. The false press releases and research reports always peddle the given business as being on the threshold of a world changing technology, treatment for a disease or fantastic new invention. The focus is forever on the glorious future of the business, but very little information is given about the company's present status.

Forex Day Trading According to the Commission's complaint, Todt was central to two fraudulent schemes. In the first, which occurred from March 2003 through at least October 2004, Todt and others allegedly inflated the price of Quality of Life Health Corporation (QLHC) stock by issuing press releases that claimed, falsely, that QLHC owned approximately $60 million worth of assisted living facilities. Those claims apparently were echoed on the QLHC website. The SEC says that Todt and others profited from increasing stock prices as investors responded to the phony information by buying QLHC shares. Todd allegedly pocketed at least $800,000 in profits by trading QLHC shares through a nominee account and by splitting profits with traders who received their QLHC stock through Todt.

What Is Institutional Sponsorship There' institutional investors. These are the mutual funds, pension funds, banks and other financial institutions that do the bulk of stock trading on any given day. It is estimated institutions account for about 70% of all trading activity. So when institutions target a stock for purchase, it's more likely to go up in price thanks to the increased demand they create. This professional stock buying is called institutional sponsorship.

Financial In Market The second scheme, which began around November 2004 and was still ongoing when the SEC sought the preliminary injunction in this case, purportedly centered on efforts to evade securities registration requirements and issue unregistered securities of four penny stock companies quoted on the Pink Sheets - Tempo Financial, Inc., STB Chip Co., SutraTel Kiosk Corp. (f/k/a Urban Transfer Systems, Inc.) and Lonisson Communications Corp.Once again, Todt allegedly disseminated false and misleading information in order to create a buzz for the four penny stocks and boost their share prices. This time, again according to the SEC, Todt and his cohorts also attempted to manipulate the market for shares in three of the companies. On March 28, 2005, the Commission entered orders suspending trading in all four of the penny stock companies. At the time, the SEC said that it was issuing the suspensions because questions had arisen concerning market manipulation and the improper distribution of securities.

Stock Trading System Source: Stockpatrol

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