2 ms·
"How is the buyer of a stock shorted based on insider information a victim? They weren't forced to buy at any price."
by jakelazaroff 8y ago
"How is the buyer of a stock shorted based on insider information a victim? They weren't forced to buy at any price."
- pbalau 8y agoYou buy stock to sell it later and make money. Most people do that. You buy and apartament to live in. Most people do that. Ffs
- wbl 8y agoThey in fact got a better price then would have happened absent the shorting.
- ryanlol 8y agoBy this logic, would it not be immoral to engage in any trades when there exist information asymmetry? There will always be "victims" who do not make a profit because they made a bad investment. A person losing money due to insider trading has almost certainly invested in a company that was not worth what they thought it was. If they’re a victim, then whose victim are they really? I have a hard time blaming the insider trader.