14 May '11, 5pm

Chinese stock scams are the latest U.S. import:

Chinese stock scams are the latest U.S. import:

Many of the questionable Chinese companies gain access to U.S. capital markets through a back door. In what's known as a reverse merger, a private company buys enough shares of a public firm to essentially become publicly traded. That allows the company to pay a much lower fee to be listed than it would with an initial public offering - not to mention sidestep the more rigorous filing demands of an IPO.

Full article: http://sg.finance.yahoo.com/news/Chinese-stock-scams-late...

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