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Why would borrowing something to sell only to buy it back to pay someone for borrowing it back be illegal?
by xkjkls 7y ago
Why would borrowing something to sell only to buy it back to pay someone for borrowing it back be illegal?
- apta 7y agoYou look at the transaction end-to-end, and what the intention behind it is. Don't get stuck in the technicalities, as that's the cause of many issues we see today.
- xkjkls 6y agoWhy is the cause of many of the issues we see today? Most all research shows that short selling is important to price discovery: https://www.aqr.com/Insights/Research/Journal-Article/Price-Efficiency-and-Short-Selling?aqrPDF=1 https://www.aqr.com/Insights/Research/Journal-Article/Price-... https://academic.oup.com/rfs/article-abstract/26/2/287/1581906?redirectedFrom=fulltext https://academic.oup.com/rfs/article-abstract/26/2/287/15819... Markets would be far worse without short sellers.