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It's just not right. Given the existence of options, shorting is no more bound by liquidity than being long on a stock. Imagine saying "Stock X is great, but
by JesperRavn 11y ago
It's just not right. Given the existence of options, shorting is no more bound by liquidity than being long on a stock.
Imagine saying "Stock X is great, but the market can undervalue X longer than I can stay solvent"?
- tbrownaw 11y agoThe control against companies staying undervalued for too long is acquisitions. Plus of course, it's possible to buy stocks and hold them long-term without worrying about margin calls forcing you out.