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>>Nothing a short seller can do will destroying a financially secure, sound company. Nothing. That is factually wrong. In today's news cycle, Cancel Culture,
by syshum 7y ago
>>Nothing a short seller can do will destroying a financially secure, sound company. Nothing.
That is factually wrong. In today's news cycle, Cancel Culture, and panicky investors there are all kinds of ways a malicious actor can and do manipulate stock prices that have exactly ZERO to do with the companies finances
To believe otherwise is utterly naive
- sfifs 7y ago> there are all kinds of ways a malicious actor can and do manipulate stock prices that have exactly ZERO to do with the companies finances Over a time horizon of a year to a few years, short selling cannot artificially depress stock price relative to market. So if you are truly long it should make no difference and you should probably cash in by writing options.
- mruts 7y agoThe biggest determinant of a company's stock price is not the company. It's beta, interest rates, and a multitude of other factors. The idiosyncratic return and variance of most companies is quite small compared to the systematic return and variance described by other factors.