Share price turbulence at Wirecard
The German company Wirecard AG is one of the largest providers of products and services in the areas of mobile payment, e-commerce, digitization and financial technology. The company benefits greatly from the worldwide shift of payment flows to the Internet. Already in 2008 and 2016, it has become the target of so-called short attacks.
Short attacks are an attempt to make short selling more lucrative. The sellers borrow share certificates, for example shares for a fee, and sell them on the market. If the share price falls, the shares can be bought back at a lower price and returned to the actual owner at a predetermined time. The stronger the price falls, the greater the short seller’s profit.