Friday, July 12, 2013 2:11 pm
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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.