An illegal practice employed by unethical internet investors who short-sell a stock and then spread unsubstantiated rumors and other kinds of unverified bad news in an attempt to drive down the equity's price and realized a profit.
Investopedia Says:
Due to recent corporate scandals and investor uncertainty, fraudsters have an easier time spreading doom and gloom by claiming that a firm is losing a very costly class action suit or is suffering from low earnings. In order to prevent being conned, investors should do their own due diligence and be critical of the authenticity of news from unverified sources.
Related Links:
This sinister version of short selling tries to profit by generating fear in the market place. Find out how you can help prevent "short and distort". The Short And Distort - Stock Manipulation In A Bear Market
Have you ever correctly predicted a stock's decline or wondered how to be profitable in a bear market? Find out how and the risks involved. Short Selling Tutorial
