The Rumor Mill

It was with great amusement that I read today’s NY Times article about how the S.E.C. will be cracking down on rumors being spread primarily by short sellers in an attempt to drive a price down. If this were true (ha, ha) it would be a great development that is long overdue. However, the spreading of rumors is part of the fabric of Wall Street and any attempt to curtail the spreading of false information will be hard to enforce. I know that “naked short selling”, in the micro-cap sector has been vicious and have hampered the growth of many tiny companies.  Indeed, maybe one day I will right a book about this?

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