4 ms·
People who are short selling are expressing the thesis that the probablity adjusted return from a bet on drop in stock price of one company is worth more than
by sfifs 7y ago
People who are short selling are expressing the thesis that the probablity adjusted return from a bet on drop in stock price of one company is worth more than investing in alternatives like an index fund etc. It's exactly equivalent in a market set-up and is balanced by someone else taking the other side of the deal.