After query, Ross shorted stock in Kremlin-tied firm: report
By MARCY GORDON AP Business Writer 10 hrs ago
WASHINGTON (AP) — Commerce Secretary Wilbur Ross made a trade betting that the stock in a shipping company with Russian-government ties would fall, a transaction coming just days after he learned of a possible negative news story about his investment in the company.
Ross reported on a government form released Monday, as required by federal ethics rules, that he shorted stock in Navigator Holdings in October. The New York Times reported Tuesday that the transaction came three business days after a Times reporter submitted questions to Ross about Navigator. The transaction, listed as worth between $100,000 and $250,000, was first reported Monday by Forbes.
Ross rebuffed any suggestions that he shorted the Navigator stock based on confidential information to make a profit. He said the transaction was part of his effort to divest from Navigator and that he did not stand to gain if the stock fell, or lose if it rose, at the time.
In short selling, a person borrows shares of a stock and sells them. The aim is to then replace the borrowed shares with others bought later at a lower price, reaping a profit from the difference.
Navigator counts a Russian gas producer with ties to the Kremlin among its major customers.
http://www.stltoday.com/news/national/govt-and-politics/after-query-ross-shorted-stock-in-kremlin-tied-firm-report/article_9da33968-e33c-5b4b-a3ba-04732e4cfbc5.html
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