It also said that Minkow's report triggered a bear raid which temporarily reduced the market capitalization of Lennar by $583 million.
But many companies bitterly complain that traders use it to drive down prices in what are called bear raids.
This had the effect of raising prices to $1.69, possibly preventing the feared 'bear raid'.
The uptick rule was repealed in July, 2007, and the alleged bear raid took place in November, 2007.
Hradsky had ruined the other two in an ingenious bear raid on the stock exchange, and had virtually stolen their shares in the Company.
That rule, with minor adjustments, has survived ever since, a monument to Depression-era distrust of what were called "bear raids."
First he organized a bear raid on the company, lowering the value of its stock.
For years, the promoters of small public companies have complained about "bear raids" by short-sellers, investors who strive to profit from declining stock prices.
A bear raid can be done by spreading negative rumors about the target firm, which puts downward pressure on the share price.
In a bear raid, a manipulator sells borrowed stock to make a profit, a legal activity called selling short.