© Reuters. US Regulators Look into Short Seller Bets on Big Name Stocks
By Sam Boughedda
According to Bloomberg Monday, investigators looking into collusion among short sellers are eyeing bets on stocks such as Amazon (NASDAQ:), JPMorgan (NYSE:), and Microsoft (NASDAQ:).
Citing sources, Bloomberg said U.S. prosecutors sent subpoenas questioning transactions in various blue-chip stocks. These questions are said to be sent to short sellers who previously responded to queries about lesser-known firms.
The previous inquiries were part of an analysis looking into the methods bearish investors use to gather and publish research about businesses to profit from the stock’s decline.
Regulators are reportedly continuing to gather information and data. In previous requests, investigators looked into dozens of investment firms, researchers, and transactions concerning more than 50 stocks.
Bloomberg added that its sources told them authorities are looking for evidence that activist firms are seeking to worsen stock declines “or otherwise manipulate markets, potentially through a variety of strategies.”
However, given that activist short sellers usually target lesser-known companies, the request for information on some of the world’s most valuable firms is said to be puzzling. They added that it suggests regulators could have found something amongst previous data collected.
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