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There are definitely good things about shorting, like giving an incentive to expose frauds through careful research (see Nikola). On the other hand it also inc
by solarkraft 6y ago
There are definitely good things about shorting, like giving an incentive to expose frauds through careful research (see Nikola).
On the other hand it also incentivizes making companies fail, thus destroying value.
I'd be interested in an analysis of which side outweighs the other.
- econnors 6y agoThere are other mechanisms for profiting off stocks losing value (eg put options) that don’t impact pricing like shorts do.