What is stock option backdating?
Every trader, investor, participant and insider in the market would LOVE to know what a stock is going to do the next hour, days, weeks or months. There is a very old, yet very true expression: “Hindsight is always 20/20.” Options are a derivative of stock. Options follow a particular stock’s price and movements. The trader, investor, participant or insider buys (or sells) a particular stock’s options. Prior to the option’s expiration date, that person looks back and determines when the best time was to get the most money for that option. Backdating means the trader, investor, participant or insider already knew when the stock had a certain move on a particular date and almost at a particular time. THEN he/she has the options sell (or buy) order falsified and stamped at that particular date and time. He/She gets the most or almost the most money as he/she can. It’s nothing short of out-and-out stealing. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my re
