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This doesn't make sense. Naked shorting a stock drives down the price in the market by increasing the supply of the stock. It in no way supports the price of
by treis 8y ago
This doesn't make sense. Naked shorting a stock drives down the price in the market by increasing the supply of the stock. It in no way supports the price of the stock. In fact, it's the exact opposite. It's a bet that the price goes down below the IPO price. Sell today at the IPO price of $45 in the hopes that you can buy it for less than that before you have to return the share.
More realistically, Morgan Stanley makes money as a middle man and just want to sell as many shares as they can.
- hmate9 8y agoYes, they made money from the commissions as well as shorting the stock and later buying it back for cheaper.