Full disclosure: I'm short this stock and you should be too!

Friday, July 12, 2013 2:11 pm - 2:11 pm EDT (GMT -04:00)

Join us for this upcoming roundtable discussion!

Since early 2010 several previously unknown investment firms have issued “research reports” with reports with strong sell ratings attached. The report begins with a disclaimer advising the reader that the author of the report has already shorted the subject company. The report then details a series of concerns, often including misappropriation of assets, lack of revenues or outright fraud. Almost instantly the share price drops anywhere from 12-80%, generating huge profits for the short seller, virtually overnight.

  • Is this legal?
  • Is this ethical?
  • Could the Chartered Financial Analyst Institute (CFAI) do this?

Join us as we examine several of these “analyst reports” in terms of their content, legality and ethical validity.