Example: Shorts knock the stock down to rock bottom prices & spread fear; management says nothing to alleviate the fears as the stock price keeps going down. Management file a registration statement with the SEC to be issued up to 6.75 milion shares of common stock (at prices chosen on a day near the bottom of the rock bottom prices) through its 2008 stock incentive plan. People cry foul play. The stock goes a bit lower which makes people feel a bit better. The stock then recovers 30% within the next couple weeks, and another 30% over the next month upon release of quarterly earnings including statements of management that it's a solid company.