A Short and Distort scam involves short selling a stock while smearing a company with false rumors to drive the stock's price down.

I've done some further editing to remove essay type material and OR, and remove non-RS website sources and links. I think care needs to be drawn in the pump and dump analogy, as pump and dumps involve valueless stocks while short and distort does not involve the equivalent undervalued stocks. --Samiharris 14:25, 23 June 2007 (UTC)

Actually the expression does involve, or at least could involve, undervalued stocks. As I understand the term, and it is used so little that one cannot say with absolute certainty, it involves spreading of false rumors about a stock. Thus the stocks involved can be either undervalued or overvalued, but are a subject of lies.--Mantanmoreland 16:50, 6 July 2007 (UTC)

If you take out the OR, you are left with material cribbed from the Wired article and not much else. It seems to have been used by a regulator once. I can't find a reference to it on the SEC website. I'd suggest merging this with short (finance).--Mantanmoreland 17:57, 5 July 2007 (UTC)

I think that is a good idea. --Samiharris 15:02, 7 July 2007 (UTC)

I've removed the links that were just added back in. The Investopedia and Fraud Guides entries are essays that cite no examples of "short and distort" schemes but simply talk about it without citing their sources. Thus they are unverifiable and expressly prohibited by WP:EL, which prohibits links that provide "unverifiable research."

The American Spectator essay is not about short and distort. It makes one brief reference to "so-called short and distort" in an article on an unrelated subject (providing of information to the SEC to influence share prices). This is therefore a meaningless link for an article on this subject and provides no useful content for the reader. Please don't inflate the "external links" section by adding links that simply mention the subject of the article and provide no information on it.--Mantanmoreland 15:10, 6 July 2007 (UTC)


The Forbes link also essentially duplicates the Connecticut attorney general testimony link, as both quote the same person saying the same thing. --Samiharris 15:21, 7 July 2007 (UTC)

SEC, others to further probe stock-price fixing
By Greg Morcroft, MarketWatch
Last update: 1:32 p.m. EDT July 13, 2008
Comments: 4
NEW YORK (MarketWatch) -- The U.S. Securities and Exchange Commission said Sunday that it and other regulators are firing up new examinations to prevent stock-price manipulation by short sellers and others.
The agencies' goal is the "prevention of the intentional spread of false information intended to manipulate securities prices."
The SEC said these examinations are in addition to the commission's enforcement investigations into alleged intentional securities price-fixing "through rumor-mongering and abusive short-selling that are already underway."
The examination will be conducted by the SEC, New York Stock Exchange regulators and the Financial Industry Regulatory Authority (FINRA).

Please note that although the requirements for the short sale of securities of certain financial services companies recently have changed, customers of E*TRADE Securities are not directly affected.
As always, E*TRADE Securities will arrange for all stock loans needed by its customers who enter short sale orders.

SEC clampdown on the 'Naked Short Sale' great news for investors
Telegraph-Journal, Canada - Aug 1, 2008
According to SEC chairman Cox, "naked" short selling can turbo charge these "distort and short" schemes. In an ordinary (legal) short sale, one borrows the ...
Wall Street shorts ruin markets
National Post, Canada - Jul 30, 2008
"We are also exploring other remedies to "distort and short" and naked short-selling abuses, such as the reporting of substantial short positions (akin to ...
SEC plans broader rules to tackle naked short selling
MarketWatch - Jul 30, 2008
... on broader rules to tackle so-called naked short selling as the regulator tries to protect investors from what it calls "distort and short artists. ...
The Buy-Side Values Short-Trade Ideas
Advanced Trading, NY - Jul 30, 2008
... the order was designed to protect legitimate short selling but prevent illegitimate naked short selling and potential ‘distort and short’ manipulation. ...
SEC and DoL share retirement data
Global Pensions, UK - Jul 30, 2008
... the Commission will continue exploring other remedies for the broader marketplace to further protect investors from ‘distort and short’ artists.”
Get Shorty
FOXBusiness - Jul 30, 2008
Reason: The SEC wants to stop what Cox calls “distort and short” manipulations, the thinking being that illegitimate rumors are driving naked short sales ...

SEC Extends Rule Limiting Short Selling Until August 12
CEP News, Canada - Jul 30, 2008
"The commission will continue exploring other remedies for the broader marketplace to further protect inventors from distort and short artists," said SEC ...FNM - FRE
US SEC extends short selling curb
Reuters UK, UK - Jul 30, 2008
... but helps prevent illegitimate naked short selling and potential 'distort and short' manipulation," SEC Chairman Christopher Cox said in a statement. ...FRE

SEC extends restrictions on short-selling
The Associated Press - Jul 30, 2008
SEC Chairman Christopher Cox said the order was also helping prevent potential "distort and short" manipulation of stocks, which occurs when rumors and ...FNM - FRE
SEC Extends Order Limiting Naked Short Selling Through August 12
Exchange News Direct, UK - Jul 29, 2008
... these securities, but helps prevent illegitimate naked short selling and potential ‘distort and short’ manipulation,” said SEC Chairman Christopher Cox. ...