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Would you buy or sell Nikola (NASDAQ: NKLA)? Why?

Would you buy or sell Nikola (NASDAQ: NKLA)? Why?

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Expert Solution

I will not buy NIKOLA because there is a risk related with the mismanagement of its books of accounts and there could be a risk related with the corporate fraud because the chief executive officer has resigned on various allegation, so I would be rather staying away from such companies which are the risk of corporate risk management and a risk of not protecting the interests of the stakeholders so I will rather try to invest in other stocks which are providing me with the better corporate reputation.

When I will first Invest into some company, I would be looking for a very high integrity of its management because it is the single most reason one is investing into long period of time because the risk of fraud with the company age lower, whereas in this company, we can say that there has been a very high risk related to to low grade corporate management and low set of ethical management so I would be staying away from such companies because they can lead to erosion of entire capital as we have seen in case of Theranos.

jeff jeffy answered 2 years ago
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