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Twitter Stock Jumps Nearly 8 Percent After Fake Report
vivaoporto writes: As noted by Re/code and many other outlets, Twitter stock jumped nearly 8 percent after a bogus report, attributed to Bloomberg News, said Twitter had received a $31 billion buyout offer. The fake story, which cited "people with knowledge of the situation," appeared on a website (Google Cache version) made to look like Bloomberg's business news page and claimed the company had received a takeover offer worth $31 billion.
The website domain, bloomberg.market (now suspended), was registered Friday, according to a search of ICANN's records. The identity of the person or company who registered it is not publicly available. Close scrutiny flagged a number of questionable elements in the report, like the name of Twitter's former chief executive, Richard Costolo, being misspelled. By late afternoon, the web page for bloomberg.market was no longer operable. A message posted on the page said, "account suspended." A spokesman for Bloomberg confirmed the takeover article was fake.
In May, a fake bid for another company, Avon Products, sent its shares as much as 20 percent higher. That offer involved a document filed with the Securities and Exchange Commission. Last month the SEC sued a Bulgarian man, Nedko Nedev, and said he and five others worked together to violate securities laws by creating fake takeover offers. Robert Heim, a former lawyer at the SEC, said these kinds of schemes will probably persist because news spreads so fast over social media and traders have to react so quickly.
The website domain, bloomberg.market (now suspended), was registered Friday, according to a search of ICANN's records. The identity of the person or company who registered it is not publicly available. Close scrutiny flagged a number of questionable elements in the report, like the name of Twitter's former chief executive, Richard Costolo, being misspelled. By late afternoon, the web page for bloomberg.market was no longer operable. A message posted on the page said, "account suspended." A spokesman for Bloomberg confirmed the takeover article was fake.
In May, a fake bid for another company, Avon Products, sent its shares as much as 20 percent higher. That offer involved a document filed with the Securities and Exchange Commission. Last month the SEC sued a Bulgarian man, Nedko Nedev, and said he and five others worked together to violate securities laws by creating fake takeover offers. Robert Heim, a former lawyer at the SEC, said these kinds of schemes will probably persist because news spreads so fast over social media and traders have to react so quickly.
Actually, several years ago there was some article posted to a part of CNN that allowed for user submitted content that claimed a person had seen Jobs being taken to a hospital after having a heart attack. Other sites started to run wild with the rumor and it caused Apple's stock to take a rather large plunge. Here's an article covering it that turned up after a quick Google search.
Spotted the problem right there. The stock market is not a tool for investment anymore: it's a gambling house and a system to extract wealth from long-term investors. Make it compulsory to hold one's shares for at least 6 months after purchase, and the problem solves itself. Of course, the fat cats don't want this, and they are the ones who have the actual power, so nothing will change.
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.