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During the 90s, after four decades of
silence, the Israeli Securities Commission (ISC) had brought several securities
fraud charges against firms, directors and brokers. Many of these
charges were based upon the claim that defendants had fraudulently inflated
the market for several stocks. An alternative explanation for defendant's
conduct is that their trading was based on private information. My study
tests the ISC claim, as well as the alternative explanation, by comparing
between the long run performance of the sixty (allegedly) manipulated stocks
and the performance of benchmark portfolios. |
