It is a situation in which an enterprise is shorted by an institution. When an enterprise encounters institutional short selling, it is a serious crisis public relations for the enterprise. Enterprises must strictly respond to short-selling information to ensure that the company's share price is not greatly affected. There are some institutions in the market that specialize in shorting enterprises. By analyzing the information of the enterprise, they can dig out the possible problems of the enterprise and enlarge the problems, thus causing a significant stock price decline for the enterprise. At the same time, such short-selling institutions will short companies and earn profits through falling stock prices.
Don't panic when enterprises encounter institutional shorting. Enterprises should conduct internal self-examination on related issues of short-selling institutions. First of all, it is necessary to find out whether there are any problems listed by short-selling institutions within the enterprise, just like the fraud incident of Luckin Coffee some time ago. It was also the short-selling institution that first exposed the fraudulent data of the enterprise, and then the enterprise set up a special investigation team to investigate the relevant data. Finally, it was found that the company did make fraud and then announced it to the public. After that, the company was subjected to a series of penalties.
If the company does not have the problems listed by the short-selling institutions after investigation, then the company can issue an announcement to confront the relevant data of the short-selling institutions, thus affirming to the outside world that the company has not made fraud. This announcement must be aimed at the relevant issues in detail, so that the outside world has confidence in the company.
In order to prove that the company is in good operating condition, it can also issue a clarification announcement and the company's share repurchase plan. Through share repurchase, it can prove to the outside world the optimism and confidence of the company in its future operation, thus boosting the confidence of investors.
After the above two operations are completed, enterprises can also issue recent favorable announcements to offset market tension. The good news released can boost the share price of enterprises to a certain extent, and the share price of enterprises may rise to a certain extent after being affected by good news.
Don't panic if the enterprise is short-circuited by the organization. After taking relevant measures, they should continue to do their own business activities to ensure the long-term development of the enterprise in the future.