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Home > Knowledge at Wharton > ’Bear Raid’ Stock Manipulation: How and When It Works and Who Benefits
Podcast: Knowledge at Wharton
Episode:

’Bear Raid’ Stock Manipulation: How and When It Works and Who Benefits

Category: Business
Duration: 00:08:17
Publish Date: 2008-04-16 16:43:25
Description: When Bear Stearns collapsed in March some insiders argued it was wrong to blame the firm’s risky bets on mortgaged-backed securities. They had another culprit: malevolent traders working together in the upside-down world of short sales -- making money by knocking down Bear’s stock. There has however been little academic research to explain the forces at work. Now Wharton finance professor Itay Goldstein and a colleague have shed some light on the process in a paper titled ”Manipulation and the Allocational Role of Prices.”

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