Short Selling in the Age of Fraud | Carson Block
Forward Guidance
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The Importance of Revenue in China
Developed market fraud tends to be a lot less salacious it's more capitalizing things that should be expensed etc but yeah I mean sometimes so the auditors of China companies back in you know 2011 2012 they started trying a little bit harder. They would actually look at inflows and outflows of the bank account or what looks like revenue which is something similar to this was going on during the dot-com bubble here in the US where these companies were all buying advertising from each other and then was coming back in in the form of revenue. So round tripping is one way that you that they can fake revenue and you can also rent cash balances in China as well if you need
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