Accounting integrity and conduct

Short sellers and financial misrepresentation

Adrian Pike Adrian Pike

Do short sellers perform a useful function or just exacerbate share price declines to their benefit and at a cost to others?

Some believe there is something immoral about short sellers targeting companies and seeking to profit from share price falls.

Others argue that short sellers aid price discovery and thereby make for more efficient, fairer markets; and, given that they use their own funds (or the funds they manage on others' behalf), are exposed to the financial consequences should the judgments they make prove to be wrong. 

The attached short report explores both the usefulness and downfall of short selling, as the example of Quindell plc illustrates.

Our forensic team deals in cases of financial misrepresentation. You can read more about this on our Forensic and investigation services page.  

Read the report
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