Short And Distort


DEFINITION of 'Short And Distort'

An illegal practice employed by unethical internet investors who short-sell a stock and then spread unsubstantiated rumors and other kinds of unverified bad news in an attempt to drive down the equity's price and realized a profit.

BREAKING DOWN 'Short And Distort'

Due to recent corporate scandals and investor uncertainty, fraudsters have an easier time spreading doom and gloom by claiming that a firm is losing a very costly class action suit or is suffering from low earnings. In order to prevent being conned, investors should do their own due diligence and be critical of the authenticity of news from unverified sources.

  1. Short Selling

    Short selling is the sale of a security that is not owned by ...
  2. Stock Basher

    An individual, either acting alone or on behalf of someone else, ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence ...
  4. Short-Sale Rule

    A Securities and Exchange Commission (SEC) trading regulation ...
  5. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  6. Poop And Scoop

    A highly illegal practice occurring mainly on the internet. A ...
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