Budapest Stock Exchange Open To Fraud, Investor Warns
- 20 Sep 2013 9:00 AM
Inadequate regulation leaves the Budapest Stock Exchange vulnerable to criminals, who list essentially worthless shares, the chief of a Budapest hedge fund told Napi Gazdaság. Plotinus CEO Viktor Zsiday said fraudsters list shares with a made-up story, drive up the price via offshore companies, then sell off the shares while the price is falling.
Investors may think that the share is cheap compared to its earlier peak, but in fact it is worth nothing, as the whole story of the company is false, Zsiday said, without naming any companies.
Source: Hungary Around the Clock
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