Article: U.S. stocks end lower ahead of inflation report

Article - Media

U.S. stocks end lower ahead of inflation report

Stephen Culp, 09 June 2021

NEW YORK (Reuters) – Wall Street ended a see-saw session lower on Wednesday as market participants awaited inflation data for clues as to when the U.S. Federal Reserve might tighten its dovish monetary policy.

The retail “meme stock” craze continued unabated. All three major U.S. stock indexes reversed earlier gains, but remained range-bound in the absence of any clear market catalysts. Continue reading “Article: U.S. stocks end lower ahead of inflation report”

Article: Wall Street languid as “meme stock” frenzy hogs spotlight

Article - Media

Wall Street languid as “meme stock” frenzy hogs spotlight

Stephen Culp, 08 June 2021

Wall Street stocks wavered near the starting line on Tuesday as a lack of clear market catalysts kept institutional investors on the sidelines, while retail traders kept the rally of so-called meme stocks alive. All three major U.S. stock indexes were little changed, with the S&P (.SPX) and the Dow (.DJI) hovering within 1% of their record closing highs.

The tech-laded Nasdaq (.IXIC) fared best, with Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) providing the biggest boost. The CBOE volatility index (.VIX), a measure of investor anxiety, touched its lowest level in over a year. Continue reading “Article: Wall Street languid as “meme stock” frenzy hogs spotlight”

Article: The Dark Money Secretly Bankrolling Activist Short- Sellers — and the Insiders Trying to Expose It

Article - Media

The Dark Money Secretly Bankrolling Activist Short-Sellers — and the Insiders Trying to Expose It

Michelle Celarier

Institutional Investor, 30 November 2020

More than a dozen short-sellers interviewed by Institutional Investor in an effort to penetrate this murky terrain say there are numerous players and various permutations of the model that may involve the sharing of ideas and research along with either a cut of the gains on the short trade or a set fee. In fact, some short-sellers believe that almost all of the activists have such backing — even those running small hedge funds themselves.

Article: GE CEO Slams Whistleblower Report As ‘Market Manipulation’

Article - Media, Publications

GE CEO Slams Whistleblower Report As ‘Market Manipulation’

Rachel Sandler,  15 August 2019

In response to a whistleblower report claiming to have uncovered massive accounting irregularities at General Electric, CEO Larry Culp said the author of the report, who previously raised concerns about Bernie Madoff’s ponzi scheme years before it was brought down, is engaging in “market manipulation” and stands to gain by tanking GE shares.

Harry Markopolos claims in the 175-page report that GE is falsifying financial statements to cover up massive losses related to its long-term-care insurance unit and the company’s oil and gas business, adding that GE is using many of the same accounting practices Enron did. Continue reading “Article: GE CEO Slams Whistleblower Report As ‘Market Manipulation’”

Article: In Pursuit of the Naked Short by Alexis Stokes

Article - Academic

In Pursuit of the Naked Short

Alexis Stokes, Texas State University

Journal of Law and Business 5/1 (Spring 2009)

This article explores the origins of naked short-selling litigation; considers
the failures of significant naked short-selling lawsuits in federal court;
surveys the obstacles erected collectively by constitutional standing requirements, the Federal Rules of Civil Procedure, the Private Securities Litigation Reform Act, brokerage firms, death spiral financiers, and the Depository Trust and Clearing Corporation; examines the efficacy of Regulation SHO, SEC rule 10b-21, and new FINRA rules; discusses recent state legislation and state court litigation; and identifies non-litigation options to curb naked short-selling. Ultimately, this article seeks to answer the question: If manipulative naked short-selling is more than a mythological scapegoat for
small cap failure, what remedies are, or should be, available?

PDF (62 Pages): Article In Pursuit of the Naked Short

Article: The Economics of Naked Short Selling — The Koch Brothers Approve!

Paper

The Economics of Naked Short Selling

Christopher Culp and J. B. Heaton

Despite the cries of alarm, we believe that naked short selling
is unlikely to have significant detrimental effects on capital markets.
In this article, we will first examine the relevant economics
and regulation, and then argue that, from an economic perspective,
naked shorting is little different from traditional shorting.

PDF (6 Pages): Paper Economics of Naked Short Selling

Continue reading “Article: The Economics of Naked Short Selling — The Koch Brothers Approve!”