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Most advocates argue that short-sellers help find the accurate price of a security, in service of the broader market goal of capital allocation. People who argu
by mediaman 6y ago
Most advocates argue that short-sellers help find the accurate price of a security, in service of the broader market goal of capital allocation. People who argue that markets should be long-only wind up advocating for frauds and failures to be mispriced in the market.
Liquidity is not usually the primary benefit. That’s usually the argument for high frequency trading firms.
- calyth2018 6y agoIt's a little on the nose when wsb is happy that Michael Burry bought into GME about a year ago? It's almost like they forgot who Christian Bale portrayed in that movie. Being on the short side isn't a problem per se. Having 140% short float is.