The Next Enron: Buying The Wrong Stock For The Right Reason
- Topics:
- Commercial Lending
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Overview: This paper focuses on certain opportunities and risks associated with investing in stocks whose prices have fallen sharply. It explores whether the Wall Street adage, “Never catch a falling knife” is advice to be followed under all circumstances. It discusses a potential principal-agent conflict reasons why money managers may avoid investment opportunities for non-investment reasons, such as perceived risk of losing their clients and/or their jobs. It also addresses ways to moderate this conflict.
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Format: PDF | Size: 311KB | Date: Jan 2003 | Pages: 10





