Market Manipulation: A Comprehensive Study of Stock Pools

Jiang, Guolin; Mahoney, Paul G.; Mei, Jianping

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Market Manipulation: A Comprehensive Study of Stock Pools

NYU Working Paper No. FIN-04-022

34 Pages Posted: 3 Nov 2008

See all articles by Guolin Jiang

Guolin Jiang

Shanghai University of Finance and Economics

Jianping Mei

Cheung Kong Graduate School of Business

There are 3 versions of this paper

Date Written: September 2004

Abstract

Using a hand collected new data set, this paper examines in detail a classic account of stock market manipulationâ¬ the â¬Sstock poolsâ¬? of the 1920s, which prompted the current anti-manipulation rules in the United States. We examine abnormal turnover and returns and the relationship between them, as well as the long-term performance of the selected stocks. We conclude that the evidence suggests informed trading rather than manipulation. Our findings have implications for regulatory policy as well as the investigation and prosecution of manipulation cases.

Keywords: Manipulation, Market regulation, Politics of finance

Suggested Citation: Suggested Citation

Jiang, Guolin and Mahoney, Paul G. and Mei, Jianping, Market Manipulation: A Comprehensive Study of Stock Pools (September 2004). NYU Working Paper No. FIN-04-022, Available at SSRN: https://ssrn.com/abstract=1294457