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.
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