From: Subject: Online File W4.5 Date: Mon, 28 May 2007 08:22:42 +0430 MIME-Version: 1.0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://higheredbcs.wiley.com/legacy/college/turban/0471705225/web/online/ch04/w4_5.html X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3028 Online File W4.5

Online File W4.5=20

THE IMPORTANCE OF SECURE TRADING=20

Online securities trading makes possible additional forms of fraud. = Here is=20 what happened in Korea on August 23, 2002: According to news items = (Korean=20 Times, August 24, 2002), an unknown criminal managed to get an = account=20 number and a password of a large investor in Korea (Hyundai Investment). = Sitting=20 in an Internet caf=E9, the criminal placed an order with the company = that managed=20 the investment, Daewoo Securities, to buy five million shares of Delta=20 Information Communication. Within 90 seconds 2.7 million shares were = sold by 100=20 sellers, at a much higher than normal price. When the fake order was = discovered=20 and the news broke out, the price of the shares spiraled down. Daewoo = Securities=20 ended with 2.7 million unwanted shares. Some analysts have suggested = that one or=20 more sellers hired the hacker so they could sell at a high price. = Whatever the=20 motive, Daewoo lost a huge amount of money.