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Citron hits Shopify in short attack, Professor Lester weighs in
Shopify recently came out in defense of its business model following an attack on the company by short seller Andrew Left of Citron. According to Desautels professor Kenneth Lester, short sellers actually do an investigative service by exposing information about companies that might have otherwise been strategically concealed; though he remains wary of the insider trading sometimes tied to shorts.
So, what to do if you’ve invested in a company recently targeted by a short seller? Prof. Lester maintains that investors should generally weather the storm and avoid selling.