Naked and Confused
Forbes, 12 February 2007
How a tiny software outfit fell victim to an illegal but unrestrained practice known as naked short-selling.
Most investors have never heard of Sedona (otcbb: SDNA.OB – news – people ) Corp., a piddling Pennsylvania outfit that sells customer relationship management software for small U.S. banks and credit unions. But to a rogue band of short-selling hedge fund managers, Sedona was prime meat.
Article: SEC is Looking at Stock Trading
New York Times, 6 February 2007
The Securities and Exchange Commission has begun a broad examination into whether Wall Street bank employees are leaking information about big trades to favored clients, like hedge funds, in an effort to curry favor with those clients, executives at Wall Street banks said.
The inquiry, these people said, seems aimed at determining how pervasive insider trading, or the illegal use of market-moving nonpublic information, may be on Wall Street. Knowledge about a large trade, like the sale of a big block of stock by the mutual fund giant Fidelity, would tell a trader which way the stock would move.
Read full article.
Naked Short Victim Strikes Back
Forbes, 2 February 2007
Overstock.com filed a $3.5 billion lawsuit in California state court Friday accusing 10 of the largest U.S. securities firms of participating in a “massive, illegal stock market manipulation scheme” to distort its stock.
Liz Moyer is CNBC digital Investing Editor, after a varied career as an editor with The New York Times (2015-2017), reporter with the Wall Street Journal (2013-2015), reporter with Dow Jones Newswires (2010-2013), senior writer with Forbes (2005-2010), editor and reporter with American Banker (1996-2005), and reporter with Thomson Financial (1994-1996).
She earned an MS in Journalism from Columbia (1991) and a BS in Diplomacy from Georgetown (1989).
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