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
Recommended Citation
Cataldo, A. J. (2004). SEC v. Universal Express, Inc.: An Event Study of News Releases and Information Asymmetry. Journal of Forensic Accounting, V, 1-24. Retrieved from https://digitalcommons.wcupa.edu/acc_facpub/14