Law360 (March 20, 2008, 12:00 AM EDT) -- A jump in the number of put options purchased just before the collapse of the once high-flying investment bank Bear Stearns Cos. has reportedly become the focus of a U.S. Securities and Exchange Commission investigation.
Regulators have decided to take a closer look at put option activity just before Bear's downfall, the Wall Street Journal reported Thursday, citing people familiar with the investigation.
When investors purchase put options, they essentially bet against the company's share price, profiting when the stock tumbles.
Insiders told the paper that...
SEC Said To Probe Bear Stearns Options Trades
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