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Rumor SMS creates panic in India

September 1, 2007 by Dusan Belic - 1 Comment

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Trader using a phoneWhile I doubt the following practice is 100% legal, apparently you can make tons of money by creating a panic on the stock market with your cell phone. All you have to do is send hundreds if not thousands of text messages with information about a major change in government policy and watch the stocks nosediving. As soon as the market drops significantly enough, buy all the stocks you can and wait for the market to rebound. Once everyone figures out it was a rumor, start selling and grab the premium.

Very similar scenario happened a week ago in India, where thousands of market players received an SMS suggesting the left had withdrawn support from the government. Withing seven minutes, the Sensex lost about 160 points slipping deep into the red. Naturally, everything went back to normal within another four minutes, with Sensex regaining bout 170 points.

[Via: textually.org]

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