FINC314 Lecture Notes - Lecture 2: Herbalife, Ponzi Scheme, Activist Shareholder

• School: University of Delaware
• Department: Finance
• Course: FINC314
• Professor: Danby Peter

Document Summary

This exploratory note is designed to impress upon you some of the things which i find to be of particular importance when it comes to the readings which i assigned for this evening. I am going to cover the short-selling articles first followed by a brief discussion of ananth madhavan"s survey article, market. Microstructure: a survey, from the journal of financial markets. Bears can make money only if the bulls push up stocks to where they are overpriced and unsound. Bulls always have been more popular than bears in this country because optimism is so strong a part of our heritage. Still, over-optimism is capable of doing more damage than pessimism since caution tends to be thrown aside. To enjoy the advantages of a free market, one must have both buyers and sellers, both bulls and bears. A market without bears would be like a nation without a free press.