An investor who bets a stock will fall by borrowing shares and selling them now, then later buying them back to return to the lender; profit comes if the repurchase price is lower than the sale price. Like borrowing a book to sell and hoping to buy it back cheaper later, short sellers can pressure prices, reveal problems, and increase volatility, so their activity can signal risk or create trading opportunities for other investors.
u.s. gaapregulatory
U.S. GAAP is a set of rules and standards that companies in the United States follow to prepare their financial reports. It helps ensure that financial information is consistent and clear, so investors and others can compare and understand a company's financial health easily.
bank holding companyregulatory
A bank holding company is a parent corporation that owns one or more banks and other financial businesses, like a household that controls several shops under the same roof. Investors care because this structure determines how the business is regulated, how it raises capital, pays dividends, and absorbs losses; it can make a banking group safer or riskier and affects the value and liquidity of the company’s shares.
federal reserveregulatory
The federal reserve is the United States’ central bank system that sets short-term interest rates, controls the supply of money, and acts as a lender of last resort to banks. Think of it like a thermostat for the economy: by raising or lowering rates and adjusting money flow it helps cool inflation or stimulate growth, which directly affects borrowing costs, corporate profits and stock valuations—key concerns for investors.
office of the comptroller of the currencyregulatory
A U.S. federal regulator that oversees and enforces rules for nationally chartered banks and federal savings associations, acting like a referee to make sure those institutions operate safely and follow banking laws. Investors care because the agency’s supervision, rule changes, or enforcement actions can affect a bank’s safety, profitability, lending ability and legal risks — all of which influence the value and stability of bank stocks and related financial assets.
SAN FRANCISCO--(BUSINESS WIRE)--
SoFi Technologies, Inc. (NASDAQ: SOFI), the one-stop shop for digital financial services, today issued the following statement:
The claims made in the Muddy Waters report demonstrate a fundamental lack of understanding of our financial statements and business. We intend to explore potential legal action against Muddy Waters for the factually inaccurate and misleading report they shared about our business today.
Muddy Waters is known for producing reports designed to erode shareholder value solely to allow short sellers to profit from a declined stock price. In fact, their report discloses their intent to begin covering a substantial majority, possibly all, of their short positions immediately upon publication, and therefore they stand to profit from their own misleading report. We have reviewed the full report and believe it is designed to deceive investors.
SoFi maintains strong confidence in the integrity of our financial reporting. We are a highly regulated public company with financial statements and extensive disclosures prepared in conformity with U.S. GAAP and the rules and regulations of the SEC, supported by robust internal controls and procedures. Additionally, we are a bank holding company regulated by the Federal Reserve and operate a bank that is regulated by the Office of the Comptroller of the Currency, among other regulators.
About SoFi
SoFi Technologies (NASDAQ: SOFI) is a one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. 13.7 million members trust SoFi to borrow, save, spend, invest, and protect their money and buy, sell and hold their crypto – all in one app – and get access to financial planners, exclusive experiences, and a thriving community. Fintechs, financial institutions, and brands use SoFi’s technology platform Galileo to build and manage innovative financial solutions across 128 million global accounts. For more information, visit www.sofi.com or download our iOS and Android apps.
