Trader Charged with Spreading False Rumors
Securities regulators charged a trader with securities fraud and market manipulation for intentionally spreading false rumors on Wall Street about a deal to take over a credit card processor. The SEC says the trader sent an instant message with fake news about the deal in November. It shot around trading floors, and the card processor's stock price plunged. By the time the company issued a news release denying the rumor, the trader had made more than $25,000, using a kind of trade known as "short-selling."
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