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. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence ...
  3. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  4. Jitney

    A situation in which one broker who has direct access to a ...
  5. Manipulation

    The act of artificially inflating or deflating the price of a ...
  6. Poop And Scoop

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