12.04.2019 - Studies

Shortsellers - Sell high, buy low


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Shortsellers enjoy a dubious reputation on the capital market. If they become involved with companies, the share price and reputation of these companies often suffer sustainably.

Not only do short sellers profit from the decline of companies, but in general opinion they do not provide any economic added value. But short sellers can be important correctives in the price formation process on capital markets. If there is no short selling mechanism on the markets, such as the real estate market, price slumps can be far more dramatic than on stock exchanges. On the other hand, price excesses on these markets are usually greater. In the corporate context, short selling can counteract a lack of control by supervisory boards and shareholders.

This article examines which short sellers have been active in German companies in the recent past and how successful they have been.

This study is only available in German.


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