Stocks

Order and execution data, quotes, cancellations, trading volume, price movements, account records, communications, and position changes can be used to reconstruct potentially disputed market activity. The SEC identifies manipulation of securities prices as conduct that may lead to an enforcement investigation, and manipulation cases can involve trading intended to create misleading indications of market interest or distort price formation. An expert can analyze the financial and market evidence and explain relevant trading patterns or market effects, while the governing legal standards and ultimate determination of whether the conduct constitutes unlawful market manipulation remain for the court or other factfinder, as applicable.

Listed stock options can introduce additional evidence concerning strike prices, expiration dates, premiums, positions, exercises, assignments, and the relationship between an option and its underlying stock. Listed stock options are derivative contracts whose value is linked to an underlying asset, which may be a stock. When options activity is central to the dispute, counsel may need an expert whose experience extends beyond common-stock trading to the relevant options strategies and market mechanics.

Stock splits, reverse stock splits, dividends, mergers, symbol changes, and other corporate actions can affect share counts, quoted prices, account records, or the way historical trading information should be interpreted. For example, a stock split changes the number of shares held while preserving the shareholder's proportional ownership at the time of the split. An expert analyzing historical positions or price movements should account for relevant corporate actions rather than comparing unadjusted figures without context.