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Short And Distort
"Short and distort" is a type of securities fraud in which investors short sell a stock and then spread negative rumors about the company in an attempt to drive down stock prices. It is often performed as a form of naked short selling in which stock is sold without being borrowed and without any intent to borrow. Once the stock price has declined, the investor uses the proceeds of the initial sale to buy a larger number of the company's shares than sold originally. Some of the newly purchased stock is used to fulfill the short-selling contract; the remaining shares are then offered for sale, which causes an additional decline in the company's share price. During the takeover of The Bear Stearns Companies by J.P. Morgan Chase in March 2008, reports swirled that short sellers were spreading rumors to drive down Bear Stearns' share price. Democratic Senator Christopher Dodd felt this was more than rumors and said, "This is about collusion." Chase was victimized by a similar "shor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Securities Fraud
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws."Securities Fraud Awareness & Prevention Tips faq by FBI, accessed February 11, 2013 Securities fraud can also include outright theft from investors ( embezzlement by ), |
Collusion
Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right. Collusion is not always considered illegal. It can be used to attain objectives forbidden by law; for example, by defrauding or gaining an unfair market advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities. It can involve "unions, wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties". In legal terms, all acts effected by collusion are considered void. Definition In the study of economics and market competition, collusion takes place within an industry when rival companies cooperate for their mutual benefit. Conspiracy usually involves an agreement between two or more sellers to take action to suppress competition between sellers in the market. Because competition among ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Short Selling
In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. There are a number of ways of achieving a short position. The most fundamental method is "physical" selling short or short-selling, which involves borrowing assets (often securities such as shares or bonds) and selling them. The investor will later purchase the same number of the same type of securities in order to return them to the lender. If the price has fallen in the meantime, the investor will have made a profit equal to the difference. Conversely, if the price has risen then the investor will bear a loss. The short seller must usually pay a fee to borrow the securities (charged at a particular rate over time, similar to an interest payment), and reimburse the lender for any cash returns such as dividends that were due ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pump And Dump
Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" (sell) their overvalued shares, the price falls and investors lose their money. This is most common with small-cap cryptocurrencies and very small corporations/companies, i.e. " microcaps". While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors through spam email, investment research websites, social media, and misinformation. Scenarios Pump-and-dump schemes may take place on the Internet using an email spam campaign, through media channels via a fake press release, or through telemarketing from " boiler room" brokerage houses (such as that dramatized in the 2000 film '' Boiler Room''). Often the stock promoter will cla ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Emulex Hoax
The Emulex hoax, an instance of securities fraud, was perpetrated by 23-year-old Mark Jakob on August 24, 2000. Jakob, a former employee of the press release distribution service Internet Wire, was facing a loss of almost $100,000 as a result of short-selling stock in the Emulex Corporation, a fiber-optic equipment manufacturer. To cover his losses, Jakob wrote a fake release stating that Emulex's CEO had quit and the company was restating its quarterly earnings from a profit to a loss."Defendant in Emulex Hoax Sentenced" Securities and Exchange Commission, Litigation Release No. 17094, August 8, 2001. Jakob then sent it to Internet Wire, posing as an Emulex publicist. The next morning, the phony release was picked up by |
Bear Raid
A bear raid is a type of stock market strategy, where a trader (or group of traders) attempts to force down the price of a stock to cover a short position. The name is derived from the common use of ''bear'' or ''bearish'' in the language of market sentiment to reflect the idea that investors expect downward price movement. A bear raid can be done by spreading negative rumors about the target firm, which puts downward pressure on the share price. This is typically considered a form of securities fraud. Alternatively, traders could take on large short positions themselves, manipulating the price with the large volume of selling, making the strategy self-perpetuating. History The practice of bear raid has its roots in the 17th-century Dutch Republic. In 1609, Isaac Le Maire, a sizeable shareholder of the Dutch East India Company (VOC), organized a bear raid on the stock of the company. See also * Uptick rule * Market manipulation In economics and finance, market manipu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bob Pisani
Robert V. Pisani (born 1956) is a correspondent for CNBC. Career Pisani has worked for CNBC since 1990. Until 1997, Pisani largely covered the real estate industry and corporate management. Since then, he has reported live from the floor of the New York Stock Exchange, surrounded by floor traders. He mainly focuses on activity in major stock market indices. Awards Pisani was twice nominated for a CableACE Award, in 1993 and 1995. In 2017, Pisani was honored with a Lifetime Achievement Award from the Security Traders Association of New York. In 2013, he won Third Place in the National Headliner Awards in the Business and Consumer Reporting category for his documentary on the diamond business, "The Diamond Rush." In 2014, Pisani was honored with a Recognition Award from the Market Technicians Association for "steadfast efforts to integrate technical analysis into financial decision making, journalism and reporting." Personal life Pisani is the son of Ralph Pisani, a real estate dev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
USA Today
''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virginia. Its newspaper is printed at 37 sites across the United States and at five additional sites internationally. The paper's dynamic design influenced the style of local, regional, and national newspapers worldwide through its use of concise reports, colorized images, Infographic, informational graphics, and inclusion of popular culture stories, among other distinct features. With an average print circulation of 159,233 as of 2022, a digital-only subscriber base of 504,000 as of 2019, and an approximate daily readership of 2.6 million, ''USA Today'' is ranked as the first by circulation on the list of newspapers in the United States. It has been shown to maintain a generally center-left audience, in regards to political persuasion. ''US ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jim Cramer
James Joseph Cramer (born February 10, 1955) is an American television personality and author. He is the host of ''Mad Money'' on CNBC and an anchor on ''Squawk on the Street''. A former hedge fund manager, founder, and senior partner of Cramer Berkowitz, Cramer wrote several books, including ''Confessions of a Street Addict'' (2002), ''Jim Cramer's Real Money: Sane Investing in an Insane World'' (2005), ''Jim Cramer's Mad Money: Watch TV, Get Rich'' (2006), and ''Jim Cramer's Get Rich Carefully'' (2013). He co-founded TheStreet.com, which he wrote for from 1996 to 2021. Cramer hosted ''Kudlow & Cramer'' from 2002 to 2005. Early life Cramer was born in 1955 in Wyndmoor, Pennsylvania (a suburb of Philadelphia), to Jewish parents. Cramer's mother, Louise A. Cramer (1928–1985), was an artist. Cramer's father, N. Ken Cramer (1922–2014), owned International Packaging Products, a Philadelphia-based company that sold wrapping paper, boxes, and bags to retailers and restaurants. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
TheStreet
''TheStreet'' is a financial news and financial literacy website. It is a subsidiary of The Arena Group. The company provides both free content and subscription services such as Action Alerts Plus a stock recommendation portfolio co-managed by Bob Lang and Chris Versace. Former notable contributors include Jim Cramer, Bob Powell, Aaron Task, Herb Greenberg, and Brett Arends. History Early years: going public TheStreet, Inc., (formerly, TheStreet.com, Inc.) was co-founded in 1996 by Jim Cramer and Marty Peretz. It became a public company via an initial public offering in May 1999 under the direction of former CEO Kevin English and former CFO Paul Kothari. Dave Kansas became editor-in-chief in April 1997. Kansas also opened a San Francisco bureau and was a member of the board of directors. In 1999, at the peak of the dot-com bubble, the market capitalization of the company was $1.7 billion. In July 2001, David J. Morrow, a former reporter for ''The New York Times'', joined T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The New Yorker
''The New Yorker'' is an American weekly magazine featuring journalism, commentary, criticism, essays, fiction, satire, cartoons, and poetry. Founded as a weekly in 1925, the magazine is published 47 times annually, with five of these issues covering two-week spans. Although its reviews and events listings often focus on the Culture of New York City, cultural life of New York City, ''The New Yorker'' has a wide audience outside New York and is read internationally. It is well known for its illustrated and often topical covers, its commentaries on popular culture and eccentric American culture, its attention to modern fiction by the inclusion of Short story, short stories and literary reviews, its rigorous Fact-checking, fact checking and copy editing, its journalism on politics and social issues, and its single-panel cartoons sprinkled throughout each issue. Overview and history ''The New Yorker'' was founded by Harold Ross and his wife Jane Grant, a ''The New York Times, N ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000. ''Fortune'' named Enron "America's Most Innovative Company" for six consecutive years. At the end of 2001, it was revealed that Enron's reported financial condition was sustained by an institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Enron has become synonymous with willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the enac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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