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Greed is really only a problem when your actions ultimately hurt someone else. In general, shorting stocks is a beneficial action because it helps prevent shar
by fairity 6y ago
Greed is really only a problem when your actions ultimately hurt someone else.
In general, shorting stocks is a beneficial action because it helps prevent shares from becoming overvalued.
So, yea, the fact that GME had 143% of its shares shorted is a function of greed. But, no, greed in this case was not a problem so long as GME's share price was fairly valued.
- InvertedRhodium 6y agoIs "fair value" an objective metric in this context?
- fairity 6y agoYea, it's objective in the sense that it's the net present value of all future cash flow. Many unknowns in that formula, of course.