3 ms·
> What is unethical about short selling? Short-sold stocks are 'borrowed' from an investor who has less market information than the trader. The trader delibe
by dingaling 9y ago
> What is unethical about short selling?
Short-sold stocks are 'borrowed' from an investor who has less market information than the trader.
The trader deliberately hides that information so as to leave the owner holding the bag when the price drops, whilst pocketing the difference as profit.
Doesn't seem ethical to me. Legal, yes.
- nopriorarrests 9y agoWell, consider TSLA, one of the most shorted stocks of last years. I don't think that Tesla short-sellers are deliberately hiding some information from investors. Jim Chanos, the most famous TSLA seller, is very open why, in his opinion, true tesla price is zero [0] and definitely not hiding anything. Some even argue that Jim is too vocal. [0] https://www.cnbc.com/2017/12/14/jim-chanos-we-think-tesla-is-worth-zero.html https://www.cnbc.com/2017/12/14/jim-chanos-we-think-tesla-is...