Pump and Dump: Financial Fraud Theory
This is a very interesting discussion of corporate fraud- on the subject of tying fraud directly into the "values" of capitalism.
"Leading figures in fraud often surrounded themselves with people who were willing to collaborate in dubious activities. They often selected people who were drawn to risk-taking and the prospects of high rewards. Importantly, the ringleaders also created organizational routines and cultures that socialized people into going along with suspect activities. They used a mix of bribery and bullying to normalize corruption."
Pump and Dump: "In their new book, 'Pump and Dump: The Rancid Rules of the New Economy,' sociology professors Robert H. Tillman and Michael L. Indergaard say that recent corporate scandals such as Enron and WorldCom are symptoms of corporate governance problems that began in the 1990s.
Using a financial fraud theory called 'pump and dump,' corporate elite artificially inflated stocks and securities in order to sell their shares at higher prices, leaving any fall-out and responsibility on naive investors."
Monday, February 27, 2006
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