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Published on Jun 27, 2012
A 1954 Hollywood movie called "Executive Suite" has a subplot w a man buying stock short w "inside info" & still loses his shirt.
The "anal retentive" controller of the company notices the short sell and puts out an earnings statement early when he finds out the inside information is that the company's CEO had a stroke and died.
The man who made the short sell thought he had a "sure thing" because the now deceased CEO made all the big decisions alone and didn't even have an executive vice president, a second in command in training to provide the company with continuity in case something happened to the CEO.
And "the street" knew this company was a "one man company", difficult to get financing for.
How much of the approximately $1,000,000,000,000,000 (1 quadrillion dollars) in derivatives are more complicated than this "simple" short sell?