The financial crisis that began in 2008 was not a crisis for everyone. For example, David Einhorn
Question:
The financial crisis that began in 2008 was not a crisis for everyone. For example, David Einhorn from Greenlight Capital made a fortune during the financial crisis. Einhorn shorted the investment bank Lehman Brothers in July of 2007 when the stock was selling for over $70 per share. The share price steadily declined over the next 10 months to around $35 per share when he publicly announced his short position at a large NYC investment conference in May of 2008. On the day of his speech, Lehman’s stock closed down an additional $2.44 per share. Lehman, which before the crisis was the fourth largest investment bank in the United States, filed for bankruptcy in September 2008.
Step by Step Answer:
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen