“The granddaddy of all China RTO frauds,” the Muddy Waters Research report on Sino-Forest Corporation reads.

May 15 (Reuters) - A husband and wife executive team at a China -based company agreed to settle civil charges on Wednesday alleging they overstated revenue and used some of the money for personal expenses, the U.S. Securities and Exchange Commission said.

Once the securities have been issued in the primary market, they become available for purchase and sale in the secondary markets. There are secondary markets for all kinds of securities, such as stocks, bonds, futures, options, etc.

There is both good and bad news in the market for Chinese private companies who are planning to go public in the U.S. stock market. On one hand, the number and the size of IPOs have reached the highest level in history