The Sec Targets A Market Trick

The practice is known as "marking the close," and the Securities & Exchange Commission is cracking down on it. On Sept. 1, the SEC accused Myron Levin, an Alexandria (Va.) builder, of using the trading technique to pump up Giant Food's stock price in 1989 and 1990. The SEC alleges that Levin frequently bought Giant shares just before the close of trading, slightly raising the stock's closing price. Those upticks were enough for Levin to avoid margin calls. Levin settled the charges without admitting or denying guilt and agreed not to violate securities laws.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.