How to Avoid Getting Crushed by Stock Fraud


No one would have predicted at the start of 2015 that Valeant Pharmaceuticals, a Canadian drug giant, would have lost more than 60 percent of its share price in two months. But in October, short seller Citron Research accused the company of engaging in bogus transaction to inflate revenue.

While nothing has been proved and some people aren't convinced the company has done anything wrong, the damage has already been done — retail investors who owned this quickly growing stock, whether on their own or in mutual funds, have lost a lot of money.

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