Big Board Wants Answers On Vonage Short Selling

Wall securities firms have until June 21 to comply with a New York Stock Exchange request for information on whether they helped lower the share price of Vonage following its initial public offering by engaging in short selling and even making “naked” trades, which are illegal.

Wall securities firms have until June 21 to comply with a New York Stock Exchange request for information on whether they helped lower the share price of Vonage following its initial public offering by engaging in short selling and even making “naked” trades, which are illegal. The New York Post reports that the Big Board query comes on the heels of an NASD investigation of the Vonage IPO, which reportedly ended up short selling some 5 million shares. After a large number of the 9,000 Vonage customers threatened not to pay for their shares, the IPO underwriters extended the pay-up deadline from May 30 to June, according to The Post.