Question
You're a short seller researching financial statements and other data about listed companies. You're certain that you've found a firm that's committing fraud by inflating
You're a short seller researching financial statements and other data about listed companies.
You're certain that you've found a firm that's committing fraud by inflating sales (reporting higher sales than actually occurred). You believe that the firm have 'cooked the books' and that you're the only one with this information, besides the fraudsters who are not aware of your knowledge. You're trying to figure out how to profit. Disregard ethical dilemmas and focus on maximising profit.
In what order should you conduct the following 6 steps
-Buy the stock.
-Give the stock to the stock lender.
-Wait for the stock price to fall.
-Sell the stock.
-Borrow the stock from a stock lender.
-Publicise your research in the financial press or public forums
Select one:
a. Borrow, buy, give, sell, publicise, wait.
b. Borrow, sell, publicise, wait, buy, give.
c. Borrow, publicise, wait, sell, buy, give.
d. Sell, borrow, give, publicise, wait, sell.
e. Buy, give, publicise, borrow, wait, sell.
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