The Causes of Economic Inequality

January 21st, 2015 by Kara in Case Studies

  The first in SPI’s series on Inequality   By: May Leung Difference in income plays a role One important factor contributing to different levels of wealth is people are paid different wages. There are several reasons why some people are paid millions while some merely earn minimum wage. (i) Wages are determined by labor market Wages are a function of the market price of skills required for a job . In a free market, the “market price of a skill” is determined by market demand and market supply. The market price of a skill, and hence ...

Profit and Ethics in Short Selling: The Case of Muddy Waters

January 6th, 2015 by Kara in Case Studies

By: Winky T. Yang   As a short selling research firm, Muddy Waters (MW) earned its reputation by successfully revealing several fraudulent Chinese firms listed in the US. MW’s combination of short selling and equity research is a clever business model, necessary to satisfy the market’s need for research analysts/firms independent of sell-side companies. This article analyzes the profit and ethics of short selling by examining the roles of research analysts and short sellers. It concludes that each MW research report should be considered individually to determine the integrity of the research and ...