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Has Google Stock Price Been Manipulated?

Jerry Wenjiu Liu

California State University, East Bay

February 3, 2009

We present the evidence that the GOOGLE stock, one of the most important stocks in the 21st century, may have been illegally controlled by large Wall Street firms. We identify a group of smart traders, including financial firm proprietary traders and large traders who trade options with large orders. We find that they have advance information about the closing prices on post earning release and option expiration days. These smart traders sell options to the market which would become worthless after the key events, and their high success rate is difficult to be explained by normal trading behavior. Additional evidence from the tape, such as unusually high quoted depth and extremely low narrow quoted spreads during clustering option expiration days, provide direct proof that the GOOGLE stock price may have been manipulated to coordinate the institutional traders' option selling activities.

Number of Pages in PDF File: 64

Keywords: Stock Manipulation, Option, Insider Trading

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Date posted: February 4, 2009  

Suggested Citation

Liu, Jerry Wenjiu, Has Google Stock Price Been Manipulated? (February 3, 2009). Available at SSRN: https://ssrn.com/abstract=1337350 or http://dx.doi.org/10.2139/ssrn.1337350

Contact Information

Jerry Wenjiu Liu (Contact Author)
California State University, East Bay ( email )
25800 Carlos Bee Boulevard
Hayward, CA 94542
United States
(510) 885-3933 (Phone)
(510) 885-7175 (Fax)
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