What is Hiddenburg Research ?
- Hiddenburg Research is a forensic financial research company, also known a short selling company. It is same as other company that run to make a profit. Hiddenberg Research makes money through financial
On May 6,1997, When a German airship named the Hindenburg caught fire and 35 people lost their lives.This was one of the world's biggest disasters and was considered a man - made disaster because there was an excessive amount of hydrogen gas and 100 people should not have been seated on the world's most flamable material.This whole incident could have been avoided.
Nathan Anderson,an Israel citizen who once run an ambulance in Jerusalem, earned his bachelor's degree from the University of Connecticut and named his company after the Hindenburg disaster in 2017 ,which he calls Hiddenburg Research.Nathan says that just as the disaster was a man - made mistake that could have been prevented, similarly his. company, Hiddenberg Research aims to prevent financial man - made disaster by searching for them and saves peoples money. Before starting this company ,Nathan worked with Harry Markopolos and uncovered the biggest financial fraud in history, Bernie Madooffs Ponzi scheme.
Hiddenburg Research is a forensic financial research company, also known a short selling company. It is same as other company that run to make a profit. Hiddenberg Research makes money through financial research all over the world. They claim to have 10 years of experience in this field, but the company was only established released in 2017, so it's unclear how they can claim 10 years of experience,may be they are including their individual experiences .
How Hiddenberg make
Now, you may be wondering how they make money through Researching and how they work?.
If you are familiar with the stocks market, you know about short selling. For who don't know,I will explain briefly. When you purchase a stock, when the stock price rises then you make a profit. But there is another way, where you make a profit when the stock price falls, which is known as short selling. Here's an example to help explain. Let's say I don't have any money and I get information that the Reliance stock will drop on the 10th . Suppose each share is worth 3000 rupees then I tell my broker to give me an Reliance share on loan, and I will return it to him on the 10th but I won't pay money,I will give share to the broker at rate of that time. I immediately sell the shares, I got from the broker in the market at 3000 rupees before 10th. Now, let's say on the 10th day, the Reliance share to 2000 rupees. I buy it back at 2000 rupees and return it to the broker. Now,I have 1000 rupees left over and I made profit. But this will only happen if I know the share price will fall . This is how Hiddenberg makes money through short selling.
Hiddenburg research first dose a deep research on a company that is suspected of fraud, and it takes years to research it . After creating a complete report, they release it on social media and news outlets. As soon as there is a commotion in the market, the shares of that particular company drop, and Hiddenberg makes its money. The company operates by giving all detail to its investor before making the report public. The investors invest money through short selling. As soon as the company share decrease they make a large profit, and Hiddenberg takes a cut of this profit. This is the company's way of making money and they don't carry out any illegal activities as this is fully legal in the US. Hindenburg Research is a company whose location is not even known. According to Wikipedia, the company has only 5 employees, but still people take it very seriously as they have carried out 45 investigations in the past 5 years.
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