Business, Legal & Accounting Glossary
Unethical strategy for increasing profits from short sales of stocks in which an investor short-sells a stock or other investment product, and then causes a decrease in the market value of the product by spreading rumors of financial weakness or other misinformation.
Short and distort is a form of illegal stock manipulation, whereby an individual tries to drive down the price of a stock through publishing and distributing unsolicited misleading advertising materials. Once the stock is negatively impacted, the scammer can short sell that stock at a gain.
The “Short and Distort” stock manipulation scheme is a lesser-known, and less common, variant of the Pump and dump stock manipulation scheme.
In this strategy, the scammer sells short a stock, and then either produces or hires someone to publish negative material about the company. The scammer then sends this information to random individuals, usually in the form of paid mailers, spam stock touts or fax blasts. Once enough investors fall for the con and sell their stock, the scammer covers at a profit.
Pump and dump
Poop and scoop
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This glossary post was last updated: 28th November, 2021 | 0 Views.