Huffpost Business

Tape-Painting Suspicions: Why Did Some Stocks Gain So Much At The End Of Tuesday?

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The last five minutes of trading on the last day of the quarter were very good to a significant number of stocks on Tuesday, including battered financial shares.

Tuesday's closing prices were particularly important to money managers who report their performance based on quarterly figures, and suspicions of "painting the tape" -- buying shares at the end of the day to drive up the price -- have been common during the final minutes of a quarter.

This year, with traders no longer allowed to short financial stocks, sharp rises in share prices in the final minute could not be offset by short-sale orders from investors who suspected tape-painting.

Read the whole story at New York Times