For-Profit College Reform Leads to Increase in Short Selling

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Controversy continues to swirl around for-profit colleges as the behind-the-scenes role of hedge funds on the industry is called into question, according to a report by ProPublica. With all the attention the industry has been getting on the Hill as well as in the press, investors have begun selling stock of publicly traded universities short, betting that the stock will drop in price if Congress or the Department of Education cracks down. According to the article, Investment Funds Stir Controversy Over Recruiting by For-Profit Colleges, the short selling is a sign that people have determined for-profit universities to be overvalued. Catch up with what’s been going on with for-profit college reform here.