ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 30, 1996 TAG: 9608300066
SECTION: BUSINESS PAGE: A-11 EDITION: METRO
SOURCE: JEFF STURGEON
Optical Cable Corp., Roanoke maker of fiber-optic cable, said Thursday it has asked for a probe of possible illegal trading of its common stock.
The company wants the Securities and Exchange Commission, National Association of Securities Dealers and the association's Nasdaq stock quotation service to check for improper trades using a practice known as selling short. An investor who sells short sells borrowed shares in hopes of rebuying them later at a lower price, betting that the price will drop. The SEC regulates that practice.
Optical Cable said investors have taken short positions on 27 percent of its shares.
The fiber-optic cable maker first sold stock to the public in March and almost immediately shares skyrocketed to $110. The stock closed Thursday at $16.50, up 371/2 cents.
LENGTH: Short : 26 linesby CNB