American firm Hindenburg is once again in the news for its report. This time Hindenburg has alleged in his report that there is collusion between Adani Group and SEBI and that SEBI Chief Madhuri Puri Buch and her husband Dhawal Buch have stake in Adani’s foreign fund. However, the Butch couple have rejected these allegations.
After the report, a period of rhetoric has also started in the political world. When the last report of Hindenburg came, there was a lot of uproar at that time and its impact was also visible on the property of Gautam Adani. In such a situation, the question is what is Hindenburg, who runs it and how is the report prepared, which creates a lot of uproar after its release.
What is Hindenburg?
First of all let us know what is Hindenburg? It was started by Nathan Anderson in the year 2017. Hindenburg is an American short seller firm. It earns billions of rupees through short selling. If we talk about short selling then it is a trading or investment strategy. In this, a person buys stocks or securities at a particular price and then sells them when the price is higher, thereby making huge profits. Apart from this, shares are also borrowed from brokers and invested elsewhere.
Along with short selling, this company does forensic finance research, financial irregularities, credit, equity etc. and analyzes them. This company also investigates unethical business practices and secret financial matters and transactions. In Hindenburg, any irregularities happening in any company are detected and a detailed report is prepared and then published. In these, factors like irregularities in accounting, shortcomings at the management level and undisclosed related party transactions are especially taken into consideration.
The company also finds out whether there is any wrongful misappropriation of money in the stock market. Or are big companies doing some mismanagement for their own benefit? Also, no harm is being caused to other companies. Till now the company has disclosed about 16 companies.
Who is owner Nathan Anderson?
Nathan Anderson has graduated in International Business from the University of Connecticut. After graduation, Anderson started his career with FactSet Research Systems Inc., a data company. Here he worked for many investment management companies. While working, he learned the intricacies of data and share market. After this, in the year 2017, he started short-selling firm Hindenburg.
How did you get the name?
Hindenburg’s name is connected to an airship accident that occurred in 1937. Actually, on May 6, 1937, an accident of an airship named Hindenburg took place in Manchester Township, New Jersey. There was a Nazi era swastika on the back of the airship. At that time there was a loud explosion in the air and the Hindenburg airship visible in the sky caught fire. Many people died in this accident and it was named after this airship.