Fomenting (stock market term)
Bapopik at AOL.COM
Bapopik at AOL.COM
Fri Mar 30 19:21:59 UTC 2007
CNBC's Jim Cramer ("Mad Money") used "fomenting" on March 20, in case anyone
missed it.
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_http://dealbook.blogs.nytimes.com/2007/03/20/cramer-market-manipulator/?mkt=b
izlink2_
(http://dealbook.blogs.nytimes.com/2007/03/20/cramer-market-manipulator/?mkt=bizlink2)
But Mr. Cramer spends most of the interview describing a practice called “
fomenting,” where a hedge fund manager essentially creates a false impression
about a company in order to drive its stock one way or another — which he says
is “blatantly illegal,” but adds that “the Securities and Exchange
Commission doesn’t understand it.” While he claims this practice is widespread, he
never says he has used it himself.
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