FNCE 239 Chapter Notes - Chapter 5: Gradient Analytics, Biovail, Diltiazem
21 Apr 2016
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The broker locates the stock to loan from the brokerage"s own inventory, one of its customers, or another financial institution. If there are high opportunity costs involved, a broker could refuse to expend the time to locate shares. If the price of the shorted-stock fell, the short seller realizes a profit, net of expenses. Has a history of inflating earnings and covering up risks to inflate prices. Has a history of suing people who publish anything bad about them. This was because cardizem la refused to work with them after hearing of the information released by gradient. One of wall street"s 10 largest customers. They do really well and average annual returns of over 40% Responded to biovail"s complaints by saying they"re completely false and that they are just reporting the truth. Known for publishing early critical reports on companies such as krispy kreme and tyco.
