In May, Hindenburg published research suggesting that Icahn Enterprises was valued more highly than its peers because it paid a lucrative dividend to shareholders despite reporting quarterly losses, which kept investors buying the stock. “Icahn has been using money taken in from new investors to pay out dividends to old investors,” Mr. Anderson wrote, comparing it to a “Ponzi-like economic structure” that was unsustainable.
How does he get the money used to buy the stock?
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