Thursday, July 13, 2006

The continuing investigation of stock option manipulation

The continuing investigation of stock option manipulation has now engulfed over 19 corporate executives and 60 companies. The crux of the issue was weather corporations inflated the value of there options by back dating or timing the grants to coincide to the days the stock price was low. Tech companies have been particularly hard hit by this investigation. The investigation is not however limited to Tech with Home Depot and United Health Care being the most notable exceptions .My guess is look for more Tech stocks to get hit and perhaps some Bio Techs . Many new and fast growing companies will be very vulnerable to this investigation because they have often rewarded employees with stock in lieu of pay.

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