Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6897365585890471936
#DOJ Is Probing #Short #Sellers for #Trading #Abuses: The Department of Justice is investigating short-selling firms for evidence of trading abuses. The investigation’s goal is to uncover #alliances and #relationships between various parties involved in a #short #sale. #ShortSqueeze Short sellers were famously squeezed by retail investors last year and the latest #investigation might have implications for the way that such #trades are conducted. According to a #Bloomberg report, the goal is to uncover possible #connections and #alliances between parties involved in a short sale: https://lnkd.in/eVKC82Ws: The inquiry’s scope is broad and includes analysis of recent #crashes in the prices of well-known #stocks with thirty #shortsellers and #research #firms are being probed in connection with their #trades. The investigation is meant to probe relationships between #hedgefunds and #money #managers, who profit from short sales, and #research #firms, whose #reports trigger the #downward #price #movement in a #stock. In a December report on the same topic, #Bloomberg stated that the Justice Department was hunting for clues in trading that money managers sought to #engineer startling #price #drops or engaged in #insider #trading.
https://lnkd.in/e6eUHqqy
