Document Type

Article

Publication Date

2004

Abstract

This article examines a single firm’s stock trading volume and the effects of multiple, positive informational news releases. Despite positive news releases, the firm’s stock price declined. The firm claimed that their declining stock price was due to naked shorting, an illegal form of stock price manipulation. The Securities and Exchange Commission (SEC) issued a litigation release on March 24, 2004, addressed this complaint, found no evidence to support the firm’s naked shorting claims, but, instead, alleged that the firm sold additional shares, fraudulently.The SEC also provided insights into additional matters involving hidden or private information and misleading, public information disseminated by the firm. Investigative- and forensicbased findings are consistent with the event-based allegations made by the SEC in their litigation release.

Publication Title

Journal of Forensic Accounting

Publisher

R.T. Edwards, Inc.

Volume

V

First Page

1

Last Page

24

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