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Stock
Frauds, Manipulations & Insider Trading
Narrated
by Louis Rukeyser
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early form of stock fraud was watering, where more shares were issued and sold that were authorized
by the company (thus diluting the value of all shares) In a corner,
traders sought to control so much of a stock that short sellers
(who had borrowed shares and sold the with
the expectation of buying back later at lower prices) were
forced to buy shares they owed from the manipulator, on his terms.
Famous corners included First Harlem Railroad and the famous Erie raids.
The Ponzi scheme (or
pyramid scheme) perfected
by Charles Ponzi in the 1920's, is the investment equivalent
of a chain letter, with returns for early investors, until all
collapses when new investment runs dry. After the 1929 stock market
crash, the securities reform of the 1930's curbed many types of
fraud and manipulation.
Insider
trading is a longstanding issue in securities markets.
The issue essentially is how fair and equitable trading can
be maintained despite great differences among traders in their
knowledge of a company's affairs. After the Securities Act of
1933 created the Securities and Exchange Commission, and the
Securities Exchange Act of 1934 gave the commission powers,
a 1942 rule known as Rule 10-b-5 established guidelines for
stock purchases by major market players or insiders. A series
of Supreme Court cases in the 1950s and '60s elaborated the
laws on insider trading, and scandals of the 1980s led to still
further attempts at reform. Analysis of stock trades by company
officials (insiders) remains a popular type of analysis
that guides many purchases of stock.
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On
two audiotapes
Run time: about three hours total
Narrator:
Louis Rukeyser
Author: Thomas D. Saler, assisted by Mary Dykstra
(Famous Frauds and Stock Manipulations)
Author: Donald Christensen (The Story of Insider Trading)
Editor: Mark Skousen and Wendy McElroy
Publisher: Knowledge Products, Inc.
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Item
# 10610
Price: $17.95
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Interested
in more economic titles?
See: Secrets
of the Great Investors series (all 13 titles)
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