Internet firm Livedoor allegedly took advantage of loopholes in the law of securities trading, to replenish the amount of assets owned by the company and its president, Hori, who led a group of Livedoor. Livedoor was established in April 1996 with 6 million yen (US $ 55,798.38) in the capital. It made its stock market debut in April 2000, with the value of the stock market of 57.2 billion yen. Its market capitalization has grown to 830 billion yen (US $ 6,88 billion) as at December 2005, 15-fold spike. Behind the steep jump in the cost of a number of very tactical moves designed to improve the stock price of the parent and group companies. Livedoor strategy mainly focused on how to attract speculative money investments from individual investors, ignoring the institutional players. Operations Livedoor was a kind of "play money" under the guise of an effort to challenge the establishment. Where Livedoor deviate from the path of honest business, and what the illegality involved in its activities? Shed light on these questions should help both companies and investors to take a more constructive use of securities and capital markets. "Hide
at Misawa Mitsuru Source: University of Hong Kong, 13 pages. Publication Date: June 7, 2006. Prod. #: HKU579-PDF-ENG
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