The Invisible Hand in the Stock Market
We prove the GOOGLE stock, one of the most important stocks in the 21st century, has been indeed 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 know in advance the closing prices on post-ER 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 too good to be normal. Strange patterns of GOOGLE stock, such as high frequency of closing on a strike price and V-shape price movements during option expiration days, confirm that the GOOGLE stock price has been manipulated to coordinate the institutional traders option selling activities.
Jerry W. Liu
California State University-East Bay College of Business and Economics Hayward,CA 94542
国际会议
大连
英文
1-60
2008-07-02（万方平台首次上网日期，不代表论文的发表时间）