NEW YORK (AP) — A published report says the Securities and Exchange Commission is looking into certain types of stock trade orders that could be distorting share prices and trading volume.
The Wall Street Journal said in Thursday's editions that the SEC is investigating the practice called "quote stuffing" where exceptionally large numbers of orders to buy or sell stocks are placed and canceled almost immediately.
The Journal cites anonymous sources and says the SEC is also reviewing another practice known as "sub-penny pricing," where orders are priced in increments smaller than a penny, but are far from the price at which the stock is trading.
The newspaper says the practices could be artificially driving stock prices lower so traders can profit from the changes in price.
