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To: S.C. Barnard who wrote (20680)	7/15/1998 4:40:00 PM
From: William Bach	Respond to of 31646

Wednesday, Jul 15 1998 10:38AM EST -Preview- From your friends at the SEC: Manipulation of stock prices by outsiders, particularly of smaller companies in volatile industries, is another danger posed by the new electronic media. It arises from the potential for outsiders to pose as insiders online to lend credibility to their information. For example, a manipulator who holds a short position in a stock may use the Internet, particularly chat rooms and bulletin boards, to start rumors disparaging the company in an effort to depress the price and to profit from the short position. SEC Commissioner Steven M.H. Wallman has expressed concern that "there may have been insiders who have been trying to manipulate stocks" through chat rooms and that such discussions can "move the market as they seem to have done" in some cases.11 The Exchange Act contains a provision making it unlawful for any person--alone, with others or through agents--to manipulate the prices of securities by disseminating false information about a possible rise or fall of prices.12