How Widespread is Late Trading in Mutual Funds?

Author(s):  
Eric Zitzewitz
Keyword(s):  
2008 ◽  
Vol 22 (3) ◽  
pp. 127-147 ◽  
Author(s):  
Jay R Ritter

During popular prime-time television shows, forensic investigators use specialized but wide-ranging scientific knowledge of chemical trace evidence, bacteria, DNA, teeth, insects, and other specialties to collect and sift evidence of possible crimes. In economics and finance, forensic investigators apply their own specialized knowledge of prices, quantities, timing, and market institutions—and sometimes discover or substantiate evidence that is used by regulatory or criminal enforcement agencies. In this article, I will discuss four recent topics in forensic finance, all of which have attracted media attention: 1) the late trading of mutual funds, 2) stock option backdating, 3) the allocation of underpriced initial public offerings to corporate executives, and 4) changes in the records of stock analyst recommendations. In most of these cases, once certain practices or patterns have been publicized, financial industry practice has changed.


2006 ◽  
Vol 96 (2) ◽  
pp. 284-289 ◽  
Author(s):  
Eric Zitzewitz
Keyword(s):  

2019 ◽  
Vol 54 (5) ◽  
pp. 58
Author(s):  
Preeta Sinha ◽  
Tamal Taru Roy ◽  
Debi Prasad Lahiri
Keyword(s):  

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