After the financial crisis, a financial innovation, the central clearing counterparty (CCP) has been proposed and proved its importance in facilitating the clearing of interbank liabilities. In its original design, there is a possibility that the CCP may go default, and thus jeopardizing the...

We show that seasoned equity offerings (SEOs), in which secondary share-offering size greatly exceeds market share turnover, provide a unique opportunity for stock price manipulation by speculators holding restricted shares. The proposed new theory is consistent with several puzzling empirical...