Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Friday, February 2, 2007

BackDated Options Little Longterm Effect on Stock Prices

WSJ studies the stock prices of companies that reported backdated stock options and finds that many of them have bounced back shortly after the news broke.  While many corporations have had to restate their financial statements, the effect on the bottom line remains substantially the same, and to some investors the drop in price from the bad publicity created buying opportunities.  See Buy a 'Backdating' Stock?

http://lawprofessors.typepad.com/securities/2007/02/bakdated_option.html

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