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Short selling is good for price discovery, and an inability to short contributes to bubble dynamics. So the speculation has value!
by nmca 6y ago
Short selling is good for price discovery, and an inability to short contributes to bubble dynamics. So the speculation has value!
- eru 6y agoThere's another fun aspect to short selling: it creates extra 'virtual' shares. So for eg a company like Tesla, securities borrowing and short sellers make it so that effectively there are more shares to buy on the market for people who want to go long.