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> Klyushin made tens of millions of dollars betting for and against (“shorting”) US companies by using hacked, nonpublic information to make stock trades. I've
by londons_explore 2y ago
> Klyushin made tens of millions of dollars betting for and against (“shorting”) US companies by using hacked, nonpublic information to make stock trades.
I've worked for a few companies who release financial results, and one common thing is that the preparation of the results is done in a hurry because they need to include sales from just a few days prior. Sometimes automation goes wrong and makes it hard to get results ready in time.
However, when the automation goes wrong, the wild fluctuations in share price before the results release doesn't happen.
To me, that's a pretty clear cut indicator that people are trading large amounts of money on these not-yet-released figures.
- londons_explore 2y agoOne potential solution to this is 'open accounting' - ie. The companies books are live streamed 24x7. They would only be certified correct at quarter ends, but the rest of the time shareholders can see up-to-the-second preliminary accounts, so there will be no surprises at the end of the quarter.
- vibrio 2y agoWould up to the second acting be more smooth? There are still very ‘chunky events’ that have large impact on valuation that occur, and the accuracy of the accounting of those events could result in large false swings in perceived valuation, no?