Those of us who invest in shares know full well that if you have some kind of insider knowledge and you buy or sell based on that knowledge, that is a criminal offence. However, there are many people on share discussion boards who are taking part in unethical share ramping – or to put it crudely “pump and dump”).
For example, a group of people (or one person with several usernames) may spread negative rumours about a company or say things like “Wow this could fall like a stone tomorrow”. The object is to fool people to sell their shares which pushes the price down. These unethical rampers then buy at a cheaper price than before they started ramping. Similarly, unethical share ramping involves people spreading rumours and saying things lie “Wow this will soar tomorrow”. This is done by people who hold the shares and want the price to go up so they can sell for a gain.
Some would claim that unethical share ramping is a bit of fun and that people who believe these plainly evident ramps are stupid. However, when 10 people are saying the same thing, it is difficult not to be influenced. Unethical share ramping also takes place by email, where the rampers are either paid to boost a share price or do it for their own gain. These email rampers gain a following of thousands and if enough people buy, based ont he email the share will go up … BUT THEN FALL, WHEN THE RAMPERS SELL and take their gains.
Greed is a terrible force which makes people behave unethically. Cannot the unethical rampers see they are deceiving and HURTING others? But I suppose they just do not care. So the other solution is to enforce people using their real names on share bulletin boards.